0000930413-18-001993.txt : 20180611 0000930413-18-001993.hdr.sgml : 20180611 20180611172446 ACCESSION NUMBER: 0000930413-18-001993 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 62 CONFORMED PERIOD OF REPORT: 20180430 FILED AS OF DATE: 20180611 DATE AS OF CHANGE: 20180611 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENZO BIOCHEM INC CENTRAL INDEX KEY: 0000316253 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEDICAL LABORATORIES [8071] IRS NUMBER: 132866202 STATE OF INCORPORATION: NY FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09974 FILM NUMBER: 18892866 BUSINESS ADDRESS: STREET 1: 60 EXECUTIVE BLVD CITY: FARMINGDALE STATE: NY ZIP: 11735 BUSINESS PHONE: 5167555500 MAIL ADDRESS: STREET 1: ENZO BIOCHEM INC STREET 2: 60 EXECUTIVE BLVD CITY: FARMINGDALE STATE: NY ZIP: 11735 10-Q 1 c91227_10q.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

Mark one

 

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

 

For the quarterly period ended April 30, 2018

or

 

oTRANSITION 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
of Incorporation or Organization)
  (IRS. Employer
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, a non-accelerated filer a smaller reporting company, or an emerging growth company (as defined in Rule 12b-2 of the Exchange Act).

 

Large accelerated filer        o     Accelerated filer x
Non-accelerated filer          o (Do not check if smaller reporting company)   Smaller reporting company o
Emerging growth company o      

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Yes o No 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 June 1, 2018, the Registrant had 47,165,942 shares of common stock outstanding.

 

ENZO BIOCHEM, INC.
FORM 10-Q
April 30, 2018

 

INDEX

 

PART I - FINANCIAL INFORMATION
 
Item 1. Financial Statements 3
     
  Consolidated Balance Sheets – April 30, 2018 (unaudited) and July 31, 2017 3
     
  Consolidated Statements of Operations for the three and nine months ended April 30, 2018 and 2017 (unaudited) 4
     
  Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended April 30, 2018 and 2017 (unaudited) 5
     
  Consolidated Statement of Stockholders’ Equity for the nine months ended April 30, 2018 (unaudited) 6
     
  Consolidated Statements of Cash Flows for the nine months ended April 30, 2018 and 2017 (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 30
     
Item 4. Controls and Procedures 31
     
Part II – OTHER INFORMATION
 
Item 1. Legal Proceedings 32
     
Item 1A. Risk Factors 32
     
Item 6. Exhibits 32
     
Signatures 32
2

Part 1 Financial Information

Item 1 Financial Statements

 

ENZO BIOCHEM, INC.

CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)

 

   April 30,
2018
(unaudited)
   July 31,
2017
 
ASSETS          
Current assets:          
Cash and cash equivalents  $62,556   $64,167 
Accounts receivable, net of allowances   14,407    15,180 
Inventories   7,278    7,047 
Prepaid expenses and other   2,175    2,690 
Total current assets   86,416    89,084 
           
Property, plant and equipment, net   7,953    7,901 
Goodwill   7,452    7,452 
Intangible assets, net   2,149    2,895 
Other assets   1,481    333 
Total assets  $105,451   $107,665 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable – trade  $8,250   $10,350 
Accrued liabilities   9,795    6,720 
Other current liabilities   623    740 
Total current liabilities   18,668    17,810 
           
Other liabilities   404    983 
Total liabilities  $19,072   $18,793 
           
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: 47,161,942 at April 30, 2018 and 46,506,176 at July 31, 2017   472    465 
Additional paid-in capital   330,517    328,294 
Accumulated deficit   (246,457)   (241,900)
Accumulated other comprehensive income   1,847    2,013 
Total stockholders’ equity   86,379    88,872 
Total liabilities and stockholders’ equity  $105,451   $107,665 

 

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
April 30,
   Nine Months Ended
April 30,
 
   2018   2017   2018   2017 
Revenues:                    
Clinical laboratory services  $18,137   $19,584   $58,001   $56,979 
Product revenues   7,415    7,312    21,618    21,721 
Royalty and license fee income   78    193    639    933 
Total revenues   25,630    27,089    80,258    79,633 
                     
Operating costs and expenses:                    
Cost of clinical laboratory services   10,995    11,334    34,767    33,282 
Cost of product revenues   3,562    3,582    10,828    10,411 
Research and development   799    766    2,358    2,071 
Selling, general and administrative   11,025    10,534    32,986    33,246 
Provision for uncollectible accounts receivable   396    620    1,989    1,968 
Legal fee expense   1,651    512    3,782    1,254 
Total operating costs and expenses   28,428    27,348    86,710    82,232 
                     
Operating loss   (2,798)   (259)   (6,452)   (2,599)
                     
Other income (expense):                    
Interest   227    115    569    240 
Other   17    (74)   86    69 
Foreign exchange gain (loss)   (462)   147    143    (308)
Loss before income taxes   (3,016)   (71)   (5,654)   (2,598)
Benefit for income taxes           1,097     
Net loss  $(3,016)  $(71)  $(4,557)  $(2,598)
                     
Net loss per common share:                    
Basic and diluted  $(0.06)  $(0.00)  $(0.10)  $(0.06)
                     
Weighted average common shares outstanding:                    
Basic and diluted   47,073    46,367    46,895    46,310 

 

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
April 30,
   Nine Months Ended
April 30,
 
   2018   2017   2018   2017 
Net loss  $(3,016)  $(71)  $(4,557)  $(2,598)
Other comprehensive income (loss):                    
Foreign currency translation adjustments   329    (116)   (166)   122 
Comprehensive loss  $(2,687)  $(187)  $(4,723)  $(2,476)

 

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

5

ENZO BIOCHEM, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
Nine Months Ended April 30, 2018
(UNAUDITED)
(in thousands, except share data)

 

    Common
Stock
Shares
Issued
    Treasury
Stock
Shares
    Common
Stock
Amount
    Additional
Paid-in
Capital
    Treasury
Stock
Amount
    Accumulated
Deficit
    Accumulated
Other
Comprehensive
Income
    Total
Stockholders’
Equity
 
Balance at July 31, 2017     46,506,176           $ 465     $ 328,294     $     $ (241,900 )   $ 2,013     $ 88,872  
                                                                 
Net loss for the period ended April 30, 2018                                       (4,557 )           (4,557 )
                                                                 
Cashless options exercise     340,898       106,911       4       1,010       (1,014 )                  
                                                                 
Vesting of restricted stock     2,562                                              
                                                                 
Exercise of stock options     274,726             3       828                         831  
Share-based compensation charges                       617                         617  
                                                                 
Issuance of common stock and treasury stock for employee 401(k) plan  match     37,580       (106,911 )           (232 )     1,014                   782  
                                                                 
Foreign currency translation adjustments                                         (166 )     (166 )
                                                                 
Balance at April 30, 2018     47,161,942           $ 472     $ 330,517     $     $ (246,457 )   $ 1,847     $ 86,379  
                                                                 

 

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

6

ENZO BIOCHEM, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)

 

   Nine Months Ended
April 30,
 
   2018   2017 
Cash flows from operating activities:          
Net loss  $(4,557)  $(2,598)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization of property, plant and equipment   1,608    1,552 
Amortization of intangible assets   742    1,140 
Provision for uncollectible accounts receivable   1,989    1,968 
Share-based compensation charges   617    601 
Accrual for share-based 401(k) employer match expense   630    552 
Foreign exchange (gain) loss   (149)   267 
           
Changes in operating assets and liabilities:          
Accounts receivable   (1,233)   (3,192)
Inventories   (257)   (213)
Prepaid expenses and other   513    195 
Accounts payable – trade   (2,126)   (459)
Accrued liabilities, other current liabilities and other liabilities   2,846    (1,707)
Other assets   (1,098)    
Total adjustments   4,082    704 
           
Net cash used in operating activities   (475)   (1,894)
           
Cash flows from investing activities:          
Capital expenditures   (1,626)   (1,424)
Security deposits and other   (51)   6 
Net cash used in investing activities   (1,677)   (1,418)
           
Cash flows from financing activities:          
Proceeds from borrowings under Credit Agreement       40,694 
Repayments under Credit Agreement       (42,250)
Installment loan and capital lease obligation payments   (299)   (428)
Proceeds from exercise of stock options   831    159 
Net cash provided by (used in) financing activities   532    (1,825)
           
Effect of exchange rate changes on cash and cash equivalents   9    (13)
           
Decrease in cash and cash equivalents   (1,611)   (5,150)
Cash and cash equivalents - beginning of period   64,167    67,777 
Cash and cash equivalents - end of period  $62,556   $62,627 

 

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

7

ENZO BIOCHEM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of April 30, 2018
(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 or with one or more of its subsidiaries referred to as the “Company” or “Companies”. The consolidated balance sheet as of April 30, 2018, the consolidated statements of operations and comprehensive income (loss) for the three and nine month ended April 30, 2018 and 2017, the consolidated statements of cash flows for the nine months ended April 30, 2018 and 2017 and the consolidated statement of stockholders’ equity for the nine months ended April 30, 2018 (the “interim statements”) 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 interim statements should be read in conjunction with the consolidated financial statements for the year ended July 31, 2017 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, 2017 has been derived from the audited financial statements at that date. The results of operations for the three and nine months ended April 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2018.

 

Effect of New Accounting Pronouncements

 

Recently Adopted Accounting Pronouncements

 

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires all excess tax benefits or deficiencies to be recognized as income tax expense or benefit in the income statement. In addition, excess tax benefits should be classified along with other income tax cash flows as an operating activity in the statement of cash flows. We adopted this standard as of August 1, 2017. The adoption of this new standard did not have a material impact on our consolidated financial statements.

 

Pronouncements Issued but Not Yet Adopted

 

In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606. ASU 2014-09 and its amendments supersede the current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue recognition standard is to require an entity to recognize as revenue the amount that reflects the consideration which it expects to be entitled to in exchange for the goods or services it transfers control of to its customers.

 

The standard will be effective for our fiscal year beginning August 1, 2018 and its interim periods. We are not early adopting. We expect to use the full retrospective method upon adoption by applying the standard to each prior reporting period presented. We continue to evaluate the expected impact of the standard. Based on our preliminary assessment of the standard, we expect that the majority of the amounts that have historically been classified as bad debt expense, primarily related to patient responsibility, will be considered an implicit price concession in determining net revenues. Accordingly, we expect to report the estimate of uncollectible balances associated with patient responsibility as a reduction of the transaction price and therefore as a reduction in net revenues when historically these amounts were classified as bad debt expense within operating costs and expenses.

 

The adoption of this standard will also result in increased disclosure, including qualitative and quantitative disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts from customers. However, the adoption of this standard is not expected to have a material impact on our financial position or cash flows.

 

In February 2016, FASB issued ASU No. 2016-02 – Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for our fiscal year beginning August 1, 2019 including interim periods within that fiscal year. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available.

8

We believe the adoption of this standard would materially impact our consolidated financial statements by significantly increasing our non-current assets and non-current liabilities on our consolidated balance sheets if we record the right of use assets and related lease liabilities for our existing operating leases.

 

We will recognize expense in the consolidated statement of operations similar to current lease accounting, in the cost of sales and selling, general and administrative.

 

In June 2016, FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses (Topic 326). This standard changes the impairment model for most financial instruments, including trade receivables, from an incurred loss method to a new forward-looking approach, based on expected losses. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. Adoption of this standard is required for our annual and interim periods beginning August 1, 2020 and must be adopted using a modified retrospective transition approach. We are currently assessing the impact of the adoption of this standard on our results of operations, financial position and cash flows.

 

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 708) Scope of Modification Accounting which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Adoption of this standard is required for our annual and interim periods beginning August 1, 2018 with the amendments in the update applied prospectively to an award modified on or after the adoption date.

 

In May 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, regarding the accounting implications of the recently issued Tax Cuts and Jobs Act (the “Act”). This standard is effective immediately. The update clarifies that in a company’s financial statements that include the reporting period in which the Act was enacted, the company must first reflect the income tax effects of the Act in which the accounting under GAAP is complete. These amounts would not be provisional amounts. The company would also report provisional amounts for those specific income tax effects for which the accounting under GAAP is incomplete but a reasonable estimate can be determined. We have recorded a provisional amount which we believe is a reasonable estimate of the effects of the Act on our financial statements as of April 30, 2018. Technical corrections or other forthcoming guidance could change how we interpret provisions of the Act, which may impact our effective tax rate and could affect our deferred tax assets, tax positions and/or our tax liabilities.

 

We reviewed all other recently issued accounting pronouncements and have concluded they are not applicable or not expected to be significant to the accounting for our operations.

 

Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on the reported results of operations.

 

Concentration Risk

 

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 40% and 38% of the Clinical Labs segment net revenue for the three months ended April 30, 2018 and 2017 respectively, and 39% and 38% for the nine months ended April 30, 2018 and 2017, respectively.

 

Note 2 – Net income (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. As a result of the net loss for the three and nine months ended April 30, 2018 and 2017 diluted weighted average shares outstanding are the same as basic weighted average shares outstanding, and do not include the potential common shares from stock options and unvested restricted stock because to do so would be antidilutive.

 

For the three and nine months ended April 30, 2018, the number of potential common shares (“in the money options”) and unvested restricted stock excluded from the calculation of diluted earnings per share was 431,000 and 694,000, respectively, because their effect would be antidilutive. For the three and nine months ended April 30, 2017, approximately 987,000 and 865,000 weighted average stock options were excluded from the calculation of diluted weighted average shares outstanding because their effect would be antidilutive.

9

For the three and nine months ended April 30, 2018, the effect of approximately 581,000 and 194,000 of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted net income per share because their effect would be anti-dilutive. For the three and nine months ended April 30, 2017, the effect of approximately zero and 165,000 of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted net income per share because their effect would be anti-dilutive.

 

Note 3 - Supplemental disclosure for statement of cash flows

 

For the nine months ended April 30, 2018 and 2017, income taxes paid by the Company were $65 and $1,021, respectively. 

 

For the nine months ended April 30, 2018 and 2017, interest paid by the Company was $61 and $99, respectively.

 

For the nine months ended April 30, 2018 and 2017, the Company financed $0 and $69 respectively, in machinery and transportation equipment under installment loans. 

 

During the nine months ended April 30, 2018 certain officers of the Company exercised 340,898 stock options in non-cash transactions. The officers surrendered 106,911 shares of the Company’s common stock to exercise the stock options. The Company recorded approximately $1,014, the market value of the surrendered shares, as treasury stock.

 

During the nine months ended April 30, 2018, the Company contributed its treasury stock and issued common stock in connection with its share-based 401(k) employer match in the amount of $782. For the 2017 period, the Company issue shares of common stock in the amount of $724.

 

Note 4 – Inventories

 

Inventories consist of the following:

   April 30,
2018
   July 31,
2017
 
Raw materials  $817   $852 
Work in process   2,065    1,905 
Finished products   4,396    4,290 
   $7,278   $7,047 

 

Note 5 – Goodwill and intangible assets

 

At April 30, 2018 and July 31, 2017, the Company’s carrying amount of goodwill, related to the Clinical Labs segment, is $7,452.

 

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

 

   Gross   Accumulated
Amortization
   Net 
July 31, 2017  $27,436   $(24,541)  $2,895 
Amortization expense       (742)   (742)
Foreign currency translation   2    (6)   (4)
April 30, 2018  $27,438   $(25,289)  $2,149 

 

Intangible assets, all finite lived, consist of the following:

 

   April 30, 2018   July 31, 2017 
   Gross   Accumulated
Amortization
   Net   Gross   Accumulated
Amortization
   Net 
Patents  $11,027   $(10,971)  $56   $11,027   $(10,951)  $76 
Customer relationships   11,892    (9,799)   2,093    11,881    (9,083)   2,798 
Website and acquired content   1,010    (1,010)       1,011    (1,011)    
Licensed technology and other   492    (492)       484    (463)   21 
Trademarks   3,017    (3,017)       3,033    (3,033)    
Total  $27,438   $(25,289)  $2,149   $27,436   $(24,541)  $2,895 
10

At April 30, 2018, information with respect to intangibles assets acquired is as follows:

 

   Useful life
assigned
  Weighted average
remaining useful life
 
Customer relationships   8 -15 years  2.5 years  
Other intangibles   10 years  1.5 years  

 

At April 30, 2018, the weighted average remaining useful life of intangible assets is approximately two years.

 

Note 6 – Accrued Liabilities

 

Accrued liabilities consist of the following:

 

   April 30,
2018
   July 31,
2017
 
Payroll, benefits, and commissions  $4,343   $4,092 
Legal fee expense   2,401    599 
Professional fees   764    442 
Research and development       143 
Other   2,287    1,444 
   $9,795   $6,720 

 

At April 30, 2018, other accrued liabilities primarily include $400 for a legal settlement.

 

Note 7 – Other Liabilities

 

Other liabilities consist of the following:

 

   April 30,
2018
   July 31,
2017
 
Capital lease obligations, net of short term  $397   $551 
Accrued legal settlement       410 
Installment loans, net of short term   7    22 
   $404   $983 

 

As of April 30, 2018, future minimum payments under the capital leases, net of interest of $75 aggregates $570 including a short term debt portion of $173 included in other current liabilities. Future minimum payments under the installment loans aggregate $44, including a short term portion of $37 included in other current liabilities.

 

Note 8 – Stockholders’ Equity

 

Controlled Equity Offering

 

The Company has a Controlled Equity OfferingSM 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”). The Company pays Cantor a commission of 3.0% of the aggregate gross proceeds received under the Sale 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 initial agreement contemplated the sale of shares of the Company’s common stock having an aggregate offering price of up to $20.0 million. In December 2014, the Sales Agreement was amended in order for the Company to offer and sell additional shares of Common Stock having an aggregate offering price of $20.0 million.

 

On September 1, 2017, the Company filed with the SEC a “shelf” registration and sales agreement prospectus covering the offering, issuance and sale of our Common Stock that may be issued and sold under the existing Sales Agreement in an aggregate amount of up to $19.15 million. A total of $150 million of securities may be sold under this shelf registration, which was declared effective September 15, 2017.

 

During the nine months ended April 30, 2018 and during fiscal 2017, the Company did not sell any shares of Common Stock under the Sales Agreement.

11

Treasury stock

 

During the nine months ended April 30, 2018, certain officers of the Company exercised 340,898 stock options in non-cash transactions. The officers surrendered 106,911 shares of the Company’s common stock to exercise the stock options. The Company recorded approximately $1,014, the market value of the surrendered shares, as treasury stock. All of the treasury shares were used in the share-based 401(k) employer match made during the nine months ended April 30, 2018.

 

Share-based compensation

 

The Company has an incentive stock option and restricted stock award plan (the “2005 Plan”), and a long term incentive share award plan, (the “2011 Plan”). The 2011 Incentive Plan, which is the only plan from which awards may 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.

 

At the 2017 annual meeting, shareholders approved the amendment and restatement of the 2011 Plan, including an increase in the number of shares of common stock authorized for grant under the 2011 Plan, from 3 million shares to 5 million shares.

 

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

 

   Three months ended
April 30,
   Nine months ended
April 30,
 
   2018   2017   2018   2017 
Stock options   $202   $204   $609   $586 
Restricted stock    2    5    8    15 
   $204   $209   $617   $601 

 

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
April 30,
   Nine months ended
April 30,
 
   2018   2017   2018   2017 
Cost of clinical laboratory services   $   $2   $   $5 
Selling, general and administrative    204    207    617    596 
   $204   $209   $617   $601 

 

No excess tax benefits were recognized during the nine month periods ended April 30, 2018 and 2017.

 

Stock Option Plans

 

The following table summarizes stock option activity during the nine month period ended April 30, 2018:

 

   Options   Weighted
Average
Exercise
Price
   Weighted
Average
Remaining
Contractual
Term
  Aggregate
Intrinsic
Value (000s)
 
Outstanding at July 31, 2017    2,130,995   $4.26         
Awarded    117,580   $8.36         
Exercised    (615,624)  $2.99      $5,896 
Cancelled or expired    (29,334)  $5.94         
Outstanding at end of period    1,603,617   $5.02   2.6 years  $4,344 
Exercisable at end of period    1,168,489   $4.25   1.2 years  $2,261 

 

As of April 30, 2018, the total future compensation cost related to non-vested options, not yet recognized in the statements of operations, was $0.9 million and the weighted average period over which the remaining expense of these awards is expected to be recognized is fourteen months.

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The intrinsic value of in the money stock option awards at the end of the period represents the Company’s closing stock price on the last trading day of the period in excess of the exercise price multiplied by the number of options.

 

Restricted Stock Awards

 

A summary of the activity pursuant to the Company’s unvested restricted stock awards for the nine months ended April 30, 2018 is as follows:

 

   Awards   Weighted
Average
Award Price
 
Outstanding at July 31, 2017   7,436   $4.45 
Awarded        
Vested   (2,562)  $(5.51)
Forfeited   (386)   (5.62)
Unvested at end of period   4,488   $2.97 

 

The fair value of a restricted stock award is determined based on the closing stock price on the award date. As of April 30, 2018, 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 twenty-two months.

 

The fair value of the awards that vested during the nine months ended April 30, 2018 and 2017 was $22 and $19, respectively.

 

The total number of shares available for grant as equity awards from the 2011 Incentive Plan is approximately 2,266,800 shares as of April 30, 2018.

 

During the nine months ended April 30, 2018, the Company contributed $782 to match its employees’ 401(k) contributions with 106,911 shares of treasury stock and by issuing 37,580 shares of its common stock, representing the fair value of the shares at the match date, and adjusted treasury stock, common stock and additional paid in capital by the same amount.

 

During the nine months ended April 30, 2017, the Company contributed $724 to match its employees’ 401(k) contributions by issuing 91,541 shares of its common stock, representing the fair value of the shares at the match date, and adjusted common stock and additional paid in capital by the same amount.

 

Note 9 – Income taxes

 

On December 22, 2017, legislation commonly known as the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017.

 

The Company calculated its best estimate of the impact of the Act in accordance with its understanding of the Act and guidance available as of the date of this filing and recorded $1.1 million as an income tax benefit in the nine months ended April 30, 2018, the period in which the legislation was enacted, related to a credit for alternative minimum taxes (AMT) paid in prior periods. A provisional amount related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was fully offset by an equivalent adjustment to the deferred tax valuation allowance. No provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was deemed necessary.

 

On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, the Company has determined that the $1.1 million income tax benefit, which relates to the AMT credit, is a provisional amount and a reasonable estimate at April 30, 2018.

 

The Company’s effective tax rate benefit for the three and nine months ended April 30, 2018 was zero and 24.1%, respectfully and was based on the refundable federal AMT credit. There was no tax provision or benefit for the 2017 periods. The Company’s effective tax rate for all periods differed from the expected net operating loss carryforward benefit at the U.S. federal statutory rate primarily due to the inability to recognize such benefit. The carryforward

13

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.

 

Note 10 – 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 Life Sciences segment develops, manufactures, and markets products to research and pharmaceutical customers. The 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. When recognized, legal settlements, net represents 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 patents or 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, 2017.

 

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

14

Three months ended April 30, 2018

 

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $18,137               $18,137 
Product revenues      $7,415            7,415 
Royalty and license fee income       78            78 
    18,137    7,493            25,630 
Operating costs and expenses:                         
Cost of clinical laboratory services   10,995                10,995 
Cost of product revenues       3,562            3,562 
Research and development       576   $223        799 
Selling, general and administrative   6,252    2,974       $1,799    11,025 
Provision for uncollectible accounts receivable   400    (4)           396 
Legal fee expense   25    19        1,607    1,651 
Total operating costs and expenses   17,672    7,127    223    3,406    28,428 
                          
Operating income (loss)   465    366    (223)   (3,406)   (2,798)
                          
Other income (expense):                         
Interest   (22)   12        237    227 
Other   15    2            17 
Foreign exchange loss       (462)           (462)
Income (loss) before income taxes  $458   $(82)  $(223)  $(3,169)  $(3,016)
                          
Depreciation and amortization included above  $437   $358   $   $20   $815 
                          
Share-based compensation included in above:                         
Selling, general and administrative   26   $17       $161    204 
Total  $26   $17   $   $161   $204 
                          
Capital expenditures  $465   $96   $   $   $561 
15

Three months ended April 30, 2017

 

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $19,584               $19,584 
Product revenues      $7,312            7,312 
Royalty and license fee income       193            193 
    19,584    7,505            27,089 
Operating costs and expenses:                         
Cost of clinical laboratory services   11,334                11,334 
Cost of product revenues       3,582            3,582 
Research and development       552   $214        766 
Selling, general and administrative   6,118    2,745       $1,671    10,534 
Provision for uncollectible accounts receivable   650    (30)           620 
Legal fee expense   4    42        466    512 
Total operating costs and expenses   18,106    6,891    214    2,137    27,348 
                          
Operating income (loss)   1,478    614    (214)   (2,137)   (259)
                          
Other income (expense):                         
Interest   (28)   12        131    115 
Other   7    (98)       17    (74)
Foreign exchange gain       147            147 
Income (loss) before income taxes  $1,457   $675   $(214)  $(1,989)  $(71)
                          
Depreciation and amortization included above  $390   $423   $   $37   $850 
                          
Share-based compensation included in above:                         
Cost of clinical laboratory services  $2               $2 
Selling, general and administrative   38   $23       $146    207 
Total  $40   $23   $   $146   $209 
                          
Capital expenditures  $483   $252   $   $   $735 
16

Nine months ended April 30, 2018

 

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $58,001               $58,001 
Product revenues      $21,618            21,618 
Royalty and license fee income       639            639 
    58,001    22,257            80,258 
Operating costs and expenses:                         
Cost of clinical laboratory services   34,767                34,767 
Cost of product revenues       10,828            10,828 
Research and development       1,690   $668        2,358 
Selling, general and administrative   18,454    8,487       $6,045    32,986 
Provision for uncollectible accounts receivable   2,000    (11)           1,989 
Legal fee expense   46    47        3,689    3,782 
Total operating costs and expenses   55,267    21,041    668    9,734    86,710 
                          
Operating income (loss)   2,734    1,216    (668)   (9,734)   (6,452)
                          
Other income (expense):                         
Interest   (70)   35        604    569 
Other   32    10        44    86 
Foreign exchange gain       143            143 
Income (loss) before income taxes  $2,696   $1,404   $(668)  $(9,086)  $(5,654)
                          
Depreciation and amortization included above  $1,254   $1,039   $   $57   $2,350 
                          
Share-based compensation included in above:                         
Selling, general and administrative   86   $61       $470    617 
Total  $86   $61   $   $470   $617 
                          
Capital expenditures  $1,459   $167   $   $   $1,626 
17

Nine months ended April 30, 2017

 

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $56,979               $56,979 
Product revenues      $21,721            21,721 
Royalty and license fee income       933            933 
    56,979    22,654            79,633 
Operating costs and expenses:                         
Cost of clinical laboratory services   33,282                33,282 
Cost of product revenues       10,411            10,411 
Research and development       1,695   $376        2,071 
Selling, general and administrative   17,967    8,596       $6,683    33,246 
Provision for uncollectible accounts receivable   1,910    58            1,968 
Legal fee expense   105    70        1,079    1,254 
Total operating costs and expenses   53,264    20,830    376    7,762    82,232 
                          
Operating income (loss)   3,715    1,824    (376)   (7,657)   (2,599)
                          
Other income (expense):                         
Interest   (85)   34        291    240 
Other   126    (98)       41    69 
Foreign exchange loss       (308)           (308)
Income (loss) before income taxes  $3,756   $1,452   $(376)  $(7,430)  $(2,598)
                          
Depreciation and amortization included above  $1,185   $1,432   $   $75   $2,692 
                          
Share-based compensation included in above:                         
Cost of clinical laboratory services  $5               $5 
Selling, general and administrative   74   $49       $473    596 
Total  $79   $49   $   $473   $601 
                          
Capital expenditures  $1,070   $354   $   $   $1,424 
18

Note 11 – Contingencies

 

The Company is engaged in litigation in the United States District Court for the Southern District of New York against Roche Diagnostic GmbH and its related company Roche Molecular Systems, Inc. (“Roche”), as declaratory judgment defendant. This case was commenced in May 2004. Roche seeks a declaratory judgment of non-breach of contract and patent invalidity against the Company. Roche has also asserted tort claims against the Company. The Company has asserted breach of contract and patent infringement causes of action against Roche. There has been extensive discovery in the case. In 2011, Roche moved for summary judgment of non-infringement regarding the Company’s patent claims. In 2012, the motion was granted in part and denied in part. In December 2012, Roche 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. In December 2013, the Court granted in part and denied in part Roche’s summary judgment motion. In October 2014, the Court ordered that damages discovery concerning the Company’s remaining contract and patent claims and Roche’s claims should be completed by the end of January 2015, and expert discovery should be completed following the Court’s not-yet-issued claim construction ruling concerning the Company’s patent infringement claim against Roche. Roche dropped its tort claims during damages discovery. On October 2, 2017, the Court issued its claim construction ruling. On May 11, 2018, the Court issued a revised scheduling order which required the completion of expert discovery by July 13, 2018 and scheduled a conference on August 17, 2018 that will function as a pre-trial conference or a pre-motion conference. The Company and Enzo Life Sciences intend to vigorously press their remaining claims and contest the claims against them.

 

There are seven pending cases originally brought by the Company in the United States District Court for the District of Delaware (“the Court”) alleging patent infringement against various companies.  On June 28, 2017, the Court issued an opinion in the Gen-Probe case, granting Gen-Probe’s motion for summary judgment that the asserted claims of the ’180 patent are invalid for nonenablement. The Court entered final judgment of invalidity of the asserted claims of the ‘180 patent on July 19, 2017 in the Gen-Probe and Hologic cases.  The Court entered partial final judgment of invalidity of the asserted claims of the ‘180 patent and stayed the remainder of the cases in the Becton Dickinson and Roche cases on July 31, 2017 and August 2, 2017, respectively.  The Company filed notices of appeal in each of the Gen-Probe, Hologic, Becton Dickinson, and Roche cases, which were docketed by the United States Court of Appeals for the Federal Circuit (“Federal Circuit”).  In the Abbott case, the parties agreed that the Court’s summary judgment ruling in the Gen-Probe case invalidated all of the ’180 patent claims asserted against the Abbott Defendants.  On August 15, 2017, the Court granted Abbott’s motion for summary judgment that the asserted claims of the ’405 patent are invalid for nonenablement.  On September 1, 2017, the Court entered final judgment of invalidity of the asserted claims of the ‘180 and ‘405 patents for nonenablement in the Abbott case.  Enzo subsequently filed a notice of appeal in the Abbott case on September 14, 2017.  The Federal Circuit docketed the appeal on September 15, 2017.  The Federal Circuit consolidated the appeals from the Abbott, Becton Dickinson, Gen-Probe, Hologic, and Roche litigations (“Consolidated Appeals”).  We disagree with the Court’s invalidity decisions regarding the ‘180 and ‘405 patents in the pending cases as set forth in our opening brief in the Consolidated Appeals pending in the Federal Circuit filed on November 28, 2017.  In the Consolidated Appeals, we have asked the Federal Circuit to reverse the Court’s grants of final and summary judgment of invalidity of the asserted claims of the ‘180 and ‘405 patents and to remand the cases against Abbott, Becton Dickinson, Gen-Probe, Hologic, and Roche to the Court.  Briefing is now complete in the Consolidated Appeals.  The parties await the Federal Circuit’s scheduling of an oral argument date for the Consolidated Appeals.  In the other two cases involving Hologic, one of the cases is stayed (Hologic II), while the other case (Hologic III) that involves the ‘581 patent is proceeding under the Court’s scheduling order with fact and expert discovery deadlines through September 2018, a summary judgment hearing date in April 2019, and a trial date in September 2019.  In Hologic III, the Court granted Enzo’s motion to amend its complaint to add two new defendants, Grifols Diagnostic Solutions, Inc. and Grifols, S.A, to that case.  Grifols, S.A. has moved to dismiss for lack of personal jurisdiction; briefing on that motion is complete but the Court has not set a date for oral argument.  The parties have completed claim construction briefing, and a claim construction hearing is scheduled for July 2, 2018.  Regarding Hologic’s petition requesting institution of an inter partes review proceeding regarding the U.S Patent No. 6,221,581 (“the ‘581 patent”) filed with the United States Patent and Trademark Office (“PTO”), the Patent Trial and Appeals Board (“the Board”) denied institution of Hologic’s petition on April 18, 2018.  On May 18, 2018, Hologic filed with the Board a request for rehearing of the order denying institution of inter partes review of the ‘581 patent.  Enzo has requested permission to file a brief in response to Hologic’s request for rehearing.

 

There can be no assurance that the Company will be successful in these litigations. Even if the Company is not successful, management does not believe that there will be a significant adverse monetary impact on the Company.

 

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.

19

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, 2017 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 an integrated diagnostic bioscience company focusing on delivering and applying advanced technology capabilities to produce affordable reliable products and services to allow our customers to meet their clinical needs. We develop, manufacture and sell our proprietary technology solutions and platforms to clinical laboratories, specialty clinics and researchers and physicians globally. Enzo’s structure and business strategy represent the culmination of years of extensive planning and work.  The Company now has the unique ability to offer low cost, high performance products and services in molecular diagnostics, which ideally positions it to capitalize on the reimbursement pressures facing diagnostic labs. Our pioneering work in genomic analysis coupled with our extensive patent estate and enabling platforms have positioned the Company to continue to play an important role in the rapidly growing molecular medicine marketplaces.

 

Enzo technology solutions and platforms and unique operational structure are designed to reduce overall healthcare costs for both government and private insurers. Our proprietary technology platforms reduces our customers’ need for multiple, specialized instruments, and offer a variety of high throughput capabilities together with a demonstrated high level of accuracy and reproducibility. Our genetic test panels are focused on large and growing markets primarily in the areas of personalized medicine, women’s health, infectious diseases and genetic disorders.

 

For example, our AMPIPROBE® technology platform can lead to the development of an entire line of nucleic acid clinical products that can allow laboratories to offer a complete menu of services at a cost that allows them to enjoy an acceptable margin. Our technology solutions provide tools to physicians, clinicians and other health care providers to improve detection, treatment and monitoring of a broad spectrum of diseases and conditions. In addition, reduced patient to physician office visits translates into lower healthcare processing costs and greater patient services.

20

In the course of our research and development activities, we have built a substantial portfolio of intellectual property assets, comprised of 336 issued patents worldwide, and over 151 pending patent applications, along with extensive enabling technologies and platforms.

 

Below are brief descriptions of each of our operating segments (See Note 10 in the Notes to Consolidated Financial Statements):

 

Enzo Clinical Labs is a clinical reference laboratory providing a wide range of clinical services to physicians, medical centers, other clinical labs and pharmaceutical companies. The Company believes having a CLIA-certified and a College of American Pathologists (“CAP”) accredited medical laboratory located in New York provides us the opportunity to more rapidly introduce cutting edge products and services to the clinical marketplace. Enzo Clinical Labs offers an extensive menu of molecular and other clinical laboratory tests and procedures used in patient care by physicians to establish or support a diagnosis, monitor treatment or medication, and search for an otherwise undiagnosed condition. Our laboratory is equipped with state-of-the-art communication and connectivity solutions enabling the rapid transmission, analysis and interpretation of generated data. We operate a full service clinical laboratory in Farmingdale, New York, a network of over 30 patient service centers throughout New York, New Jersey and expanding into Connecticut, a free standing “STAT” or rapid response laboratory in New York City and a full service phlebotomy, in-house logistics department, and an information technology department. Given our license in New York State, we are able to offer testing services to clinical laboratories and physicians in the majority of states nationwide.

 

Enzo Life Sciences manufactures, develops and markets products and tools to clinical research, drug development and bioscience research customers worldwide. Underpinned by broad technological capabilities, Enzo Life Sciences has developed proprietary products used in the identification of genomic information by laboratories around the world. Information regarding our technologies can be found in the “Core Technologies” section (See Form 10K for the fiscal year ended July, 31, 2017). We are internationally recognized and acknowledged as a leader in the development, manufacturing validation and commercialization of numerous products serving not only the clinical research market but life sciences researchers in the fields of cellular analysis and drug discovery, among others. Our operations are supported by global operations allowing for the efficient marketing and delivery of our products around the world.

 

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 for 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 101 patents and patent applications.

21

Results of Operations

Three months ended April 30, 2018 compared to April 30, 2017
(in 000s)

 

Comparative Financial Data for the Three Months Ended April 30,

 

   2018   2017   Increase
(Decrease)
   %
Change
 
Revenues:                    
Clinical laboratory services  $18,137   $19,584   $(1,447)   (7)
Product revenues   7,415    7,312    103    1 
Royalty and license fee income   78    193    (115)   (60)
Total revenues   25,630    27,089    (1,459)   (5)
                     
Operating costs and expenses:                    
Cost of clinical laboratory services   10,995    11,334    (339)   (3)
Cost of product revenues   3,562    3,582    (20)   (1)
Research and development   799    766    33    4 
Selling, general and administrative   11,025    10,534    491    5 
Provision for uncollectible accounts receivable   396    620    (224)   (36)
Legal fee expense   1,651    512    1,139    222 
Total operating costs and expenses   28,428    27,348    1,080    4 
                     
Operating loss   (2,798)   (259)   (2,539)   ** 
                     
Other income (expense):                    
Interest   227    115    112    97 
Other   17    (74)   91    ** 
Foreign currency gain (loss)   (462)   147    (609)   ** 
Loss before income taxes  $(3,016)  $(71)  $(2,945)   ** 

 

**not meaningful

 

Consolidated Results:

 

The “2018 period” and the “2017 period” refer to the three months ended April 30, 2018 and 2017, respectively.

 

Clinical laboratory services revenues for the 2018 period were $18.1 million compared to $19.6 million in the 2017 period, a decrease of $1.5 million or 7%. Services revenue was impacted by the loss of a large medical practice that internalized approximately $1.9 million of genetic testing ordering, storm related weather in the Northeast which impacted operations by approximately $1.0 million, and by an accounts receivable reserve adjustment of approximately $0.5 million due to a commercial payer payment practice. These impacts were partially offset by an increase in core service testing volume of nearly 2% or $2.0 million from growth in genetic and esoteric testing.

 

Product revenues for the 2018 period were $7.4 million compared to $7.3 million in the 2017 period, an increase of $0.1 million or 1%. The increase resulted from the positive impact of foreign currency translation of $0.2 million, which was partially offset by lower product order volume of $0.1 million in the United States due to lower research funding.

 

The cost of clinical laboratory services during the 2018 period was $11.0 million as compared to $11.3 million in the 2017 period, a decrease of $0.3 million or 3% due to a decrease in outside reference lab testing of $1.0 million, partially offset by increases in salary expenses of $0.4 million, reagent costs of $0.2 million, and depreciation, repair and maintenance costs of $0.1 million. Gross profit margin was 39.4% in the 2018 period and 42% in the 2017 period and was impacted by the mix of tests and an increase in contractual allowances.

 

The cost of product revenues was $3.6 million in both the 2018 and 2017 periods. Due to a more profitable mix of products sold, the gross profit margin on products was 52% in the 2018 period and 51% in the 2017 period.

22

Research and development expenses were $0.8 million in both the 2018 and 2017 periods. The expense for the Life Sciences segment was $0.6 million and $0.2 million for the Therapeutics segment in both periods.

 

Selling, general and administrative expenses were approximately $11.0 million during the 2018 period versus $10.5 million during the 2017 period, an increase of $0.5 million or 5%. The Clinical Lab segment expense increased $0.1 million, primarily comprised of billing and collection expenses. The Life Sciences segment expense increased $0.2 million due to increases in marketing headcount. The Other segment expense increased $0.2 million from an increase in benefits expense.

 

The provision for uncollectible accounts receivable, primarily related to the Clinical Labs segment, was approximately $0.4 million in the 2018 period and $0.6 million in the 2017 period, a decrease of approximately $0.2 million. As a percentage of Clinical laboratory services, the provision for uncollectible accounts receivable relating to the Clinical Labs segment was 2.2% in the 2018 period and 3.3% in the 2017 period.

 

Legal fee expense was $1.7 million during the 2018 period compared to $0.5 million in the 2017 period, an increase of $1.1 million or 222% due to the timing of legal activity and related costs associated with on-going litigation and contract dispute where the Company is the plaintiff.

 

Segment Results:

 

Clinical Labs

 

Revenues from laboratory services for the 2018 period were $18.1 million compared to $19.5 million in the 2017 period. The decrease of $1.4 million or 7% is attributed to the loss of a large medical practice that internalized its genetic testing ordering, storm related weather in the Northeast, and by an accounts receivable reserve adjustment due to a commercial payer payment practice. These impacts were partially offset by an increase in core service testing volume from growth in genetic and esoteric testing. Cost of services during the 2018 period was $11.0 million as compared to $11.3 million in the 2017 period, a decrease of $0.3 million or 3% due lower costs associated with outside reference lab testing, which was partially offset by higher salary, reagent and equipment related costs. Gross profit margin was 39.4% in the 2018 period and 42% in the 2017 period and was impacted by the mix of tests and an increase in contractual allowances. Selling, general and administrative expenses increased $0.1 million for billing and collection costs. As a percentage of revenues, the provision for uncollectable accounts, primarily for self-pay patient accounts, was 2.2% for the 2018 period and 3.3% for the 2017 period. Income before taxes was $0.5 million for 2018 period as compared to $1.5 million in the 2017 period, a decrease of $1.0 million as a result of lower revenues.

 

Life Sciences

 

Product revenues for the 2018 period were $7.4 million compared to $7.3 million in the 2017 period, an increase of $0.1 million or 1%. The increase resulted from the positive impact of foreign currency translation of $0.2 million, which was partially offset by lower product order volume of $0.1 million in the United States due to lower research funding. The segment’s gross profit was $3.9 million in both the 2018 and 2017 periods. The gross profit margin on products was 52% in the 2018 period and 51% in the 2017 period and was positively impacted by slightly lower price discounting. Selling general and administrative (SG&A) expenses increased $0.2 million for marketing costs. Research and development expense in both periods was $0.6 million. Due to significant depreciation of foreign currencies versus the US dollar at the end of the 2018 period compared to the start of the 2018 period, in particular the Swiss franc, British pound and Euro, the foreign currency loss was $0.5 million compared to a gain of $0.1 million in the 2017 period, an unfavorable change of $0.6 million. The 2018 period loss before taxes was $0.1 million for as compared to income before taxes of $0.7 million for the 2017 period, a decrease of $0.8 million, the result of the foreign currency loss and increase in SG&A.

 

Therapeutics

 

The Therapeutics segment’s operating loss before income taxes was approximately $0.2 million in both the 2018 and 2017 periods.

 

Other

 

The Other segment’s loss before taxes for the 2018 period was approximately $3.2 million compared to $2.0 million for the 2017 period, an increase of $1.2 million. The 2018 period legal expense associated with on-going litigation and contract dispute increased $1.1 million. Compensation and benefits related expenses increased $0.2 million. Interest income increased $0.1 million due to the impact of a higher interest rate earned on cash and cash equivalents during the 2018 period compared to 2017.

23

Results of Operations

 

Nine months ended April 30, 2018 compared to April 30, 2017
(in 000s)

 

Comparative Financial Data for the Nine Months Ended April 30,

 

   2018   2017   Increase
(Decrease)
   %
Change
 
Revenues:                    
Clinical laboratory services  $58,001   $56,979   $1,022    2 
Product revenues   21,618    21,721    (103)   ** 
Royalty and license fee income   639    933    (294)   (32)
Total revenues   80,258    79,633    625    1 
                     
Operating costs and expenses:                    
Cost of clinical laboratory services   34,767    33,282    1,485    4 
Cost of product revenues   10,828    10,411    417    4 
Research and development   2,358    2,071    287    14 
Selling, general and administrative   32,986    33,246    (260)   (1)
Provision for uncollectible accounts receivable   1,989    1,968    21    1 
Legal fee expense   3,782    1,254    2,528    202 
Total operating costs and expenses   86,710    82,232    4,478    5 
                     
Operating loss   (6,452)   (2,599)   (3,853)   ** 
                     
Other income (expense):                    
Interest   569    240    329    ** 
Other   86    69    17    25 
Foreign currency gain (loss)   143    (308)   451    ** 
Loss before income taxes  $(5,654)  $(2,598)  $(3,056)   (118)

 

**not meaningful

 

Consolidated Results:

 

The “2018 period” and the “2017 period” refer to the nine months ended April 30, 2018 and 2017, respectively.

 

Clinical laboratory services revenues for the 2018 period were $58.0 million compared to $57.0 million in the 2017 period, an increase of $1.0 million or 2%. The increase is attributed to an increase in core service testing volume from growth in genetic and esoteric testing, partially offset by the loss of a large medical practice that internalized its genetic testing ordering, storm related weather in the Northeast, and by an accounts receivable reserve adjustment due to a commercial payer payment practice.

 

Product revenues for the 2018 period were $21.6 million compared to $21.7 million in the 2017 period, a decrease of $0.1 million or less than 1%. The decrease resulted from lower product order volume of $0.6 million, primarily due to lower research funding and lower pricing due to competition in the United States, which was partially offset by the positive impact of foreign currency translation of $0.5 million.

 

The cost of clinical laboratory services during the 2018 period was $34.8 million as compared to $33.3 million in the 2017 period, an increase of $1.5 million or 4% due to the volume increase in clinical laboratory services, and is comprised of $1.0 million for reagents, $1.1 million in salary expenses and $0.2 million of depreciation, repair and maintenance costs, partially offset by a decrease of $0.8 million for outside reference lab testing costs due to lower molecular testing levels. Gross profit margin was 40.1% in the 2018 period and 41.6% in the 2017 period, impacted by the mix of tests.

 

The cost of product revenues was $10.8 million in the 2018 period and $10.4 million in the 2017 period, an increase of $0.4 million or 4% due to the sale of lower margin items. The gross profit margin on products was 50% in the 2018 period and 52% in the 2017 period, and was also negatively impacted by lower pricing due to competition.

24

Research and development expenses were $2.4 million versus $2.1 million in the 2018 period, an increase of $0.3 million or 14%. The expense for the Life Sciences segment was $1.7 million in both periods. The expense for the Therapeutics segment was $0.7 million in the 2018 period and $0.4 million in the 2017 period. The lower expense in the 2017 period was due to the impact of an adjustment decreasing an obligation for clinical trial activity.

 

Selling, general and administrative expenses were approximately $33.0 million during the 2018 period versus $33.2 million during the 2017 period, a decrease of $0.2 million or 1%. The Clinical Lab segment expense increased $0.5 million comprised of a $0.6 million increase in billing and collection expenses and a $0.1 million increase in salaries, partially offset by a decrease of $0.2 million in office materials. The Life Sciences segment expense decreased $0.1 million due to lower compensation. The Other segment expense decreased $0.6 million, comprised of a decrease in compensation related expenses of $0.5 million and a decrease of $0.1 million in office expenses.

 

The provision for uncollectible accounts receivable, primarily related to the Clinical Labs segment, was approximately $2.0 million in both the 2018 and 2017 periods. As a percentage of Clinical laboratory services, the provision for uncollectible accounts receivable relating to the Clinical Labs segment was 3.4% in both the 2018 and 2017 periods.

 

Legal fee expense was $3.8 million during the 2018 period compared to $1.3 million in the 2017 period, an increase of $2.5 million or 202% due to the timing of legal activity and related costs associated with on-going litigation and contract dispute where the Company is the plaintiff.

 

Segment Results:

 

Clinical Labs

 

Revenue from laboratory services for the 2018 period were $58.0 million compared to $57.0 million in the 2017 period. The increase of $1.0 million or 2% is attributed to an increase in core service testing volume from growth in genetic and esoteric testing, partially offset by the loss of a large medical practice that internalized its genetic testing ordering, storm related weather in the Northeast, and by an accounts receivable reserve adjustment due to a commercial payer payment practice. Cost of services during the 2018 period was $34.8 million as compared to $33.3 million in the 2017 period, an increase of $1.5 million or 4% due to the volume increase in clinical laboratory services, and is comprised of $1.0 million for reagents, $1.1 million in salary expenses and $0.2 million of depreciation, repair and maintenance costs, partially offset by a decrease of $0.8 million for outside reference lab testing costs relating to molecular testing levels. Gross profit margin was 40.1% in the 2018 period and 41.6% in the 2017 period and was impacted by the mix of tests and an increase in contractual allowances. As a percentage of revenues, the provision for uncollectable accounts, primarily for self-pay patient accounts, was 3.4% for both the 2018 and 2017 periods. Income before taxes was $2.7 million for 2018 period as compared to $3.8 million in the 2017 period, a decrease of $1.1 million.

 

Life Sciences

 

Product revenues for the 2018 period were $21.6 million compared to $21.7 million in the 2017 period, a decrease of $0.1 million or less than 1%. The decrease resulted from lower product order volume of $0.6 million, primarily in the United States due to lower research funding and lower pricing due to competition, which was partially offset by the positive impact of foreign currency translation of $0.5 million. The segment’s gross profit was $11.4 million in the 2018 period and $12.2 million in the 2017 period. The gross profit margin on products was 50% in the 2018 period and 52% in the 2017 period and was negatively impacted by the sale of lower margin products and price discounting. In the 2018 period, selling general and administrative expenses decreased $0.1 million compared to the 2017 period. Due to nearly offsetting impacts of the depreciation of the Swiss franc and the appreciation of the British pound and Euro versus the US dollar at the end of the 2018 period compared to the start of the 2018 period, the foreign currency gain was $0.1 million compared to a loss of $0.3 million in the 2017 period, a favorable change of $0.4 million. Income before taxes was $1.4 million for both the 2018 and 2017 periods.

 

Therapeutics

 

The Therapeutics segment’s operating loss before income taxes was approximately $0.7 million in the 2018 period and $0.4 million in the 2017 period. The lower expense during the 2017 period was due to the impact of an adjustment decreasing an obligation for clinical trial activity.

 

Other

 

The Other segment’s loss before taxes for the 2018 period was approximately $9.1 million compared to $7.4 million for the 2017 period, an increase of $1.7 million. During the 2018 period, legal fee expense associated with on-going

25

litigation and contract dispute increased $2.6 million. The 2018 period selling general and administrative expense declined $0.6 million compared to the 2017 period due to a $0.5 million decrease in compensation related expenses and a $0.1 million decrease in office expense. Interest income increased $0.3 million in the 2018 period due to the impact of a higher interest rate earned on cash and cash equivalents and because of interest expense incurred in the 2017 period on the then outstanding loan payable. The loan was repaid during the second quarter of 2017 period.

 

Liquidity and Capital Resources

 

At April 30, 2018, the Company had cash and cash equivalents of $62.6 million of which $0.6 million was in foreign accounts, as compared to cash and cash equivalents of $64.2 million, of which $0.5 million was in foreign accounts at July 31, 2017. It is the Company’s current intent to permanently reinvest these 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 $67.8 million at April 30, 2018 compared to $71.3 million at July 31, 2017. The decrease in working capital of $3.5 million was primarily due to the period loss and net changes in operating assets and liabilities.

 

Net cash used in operating activities during the 2018 period was approximately $0.5 million as compared to cash used in operating activities of $1.9 million during the 2017 period, a decrease of approximately $1.4 million. The decrease is due to a net change in assets and liabilities of $4.0 million offset by an increase in net loss of $2.0 million and a $0.6 million change in non-cash adjustments.

 

Net cash used in investing activities in fiscal 2018 and 2017 was approximately $1.7 million and $1.4 million, respective, which consists primarily of capital expenditures.

 

Net cash provided by financing activities in fiscal 2018 was approximately $0.5 million as compared to cash used in financing activities of $1.8 million in fiscal 2017. The change of $2.4 million is mainly due to payments made under a credit agreement of $1.6 million in the 2017 period, an increase in proceeds from the exercise of stock options of $0.7 million, and a decrease of $0.1 million in installment loan payments in the 2018 period.

 

The Company believes that its current cash and cash equivalents level, and utilization of the Controlled Equity Offering program if necessary, are sufficient for its foreseeable liquidity and capital resource needs over at least 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. Our liquidity plans are subject to a number of risks and uncertainties, including those described in the Item 1A. “Risk Factors” section of our Form 10-K for the year ended July 31, 2017, some of which are outside our control. Macroeconomic conditions could limit our ability to successfully execute our business plans and therefore adversely affect our liquidity plans.

 

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, 2017.

 

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 11 to the Consolidated Financial Statements.

 

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.

 

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

26

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
April 30, 2018
    Three months ended
April 30, 2017
 
Revenue category                            
Third-party payer   $ 9,965     55 %   $ 10,455     53 %
HMO’s     2,867     16       2,556     13  
Medicare     2,858     16       2,832     15  
Patient self-pay     2,447     13       3,741     19  
Total   $ 18,137     100 %   $ 19,584     100 %
                             
    Nine months ended
April 30, 2018
    Nine months ended
April 30, 2017
 
Revenue category                            
Third-party payer   $ 32,726     56 %   $ 31,422     55 %
Medicare     9,073     16       8,462     15  
HMO’s     8,513     15       7,478     13  
Patient self-pay     7,689      13       9,617     17  
Total   $ 58,001     100 %   $ 56,979     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.

 

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 40% and 38% of the Clinical Labs segment net revenue for the three months ended April 30, 2018 and 2017 respectively, and 39% and 38% for the nine months ended April 30, 2018 and 2017, 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.

27

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 from these programs.

 

During the three months ended April 30, 2018 and 2017, the contractual adjustment percentages, determined using current and historical reimbursement statistics, were 85.1% and 84.4%, respectively, of gross billings. During the nine months ended April 30, 2018 and 2017, the contractual adjustment percentages, determined using current and historical reimbursements statistics, were 84.7% and 83.6%, respectively. In general, 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 molecular 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 $3.8 million and $3.5 million for the nine months ended April 30, 2018 and 2017, respectively, and a change in the net accounts receivable of approximately $0.6 million as of April 30, 2018.

 

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. Therefore, we are unable to quantify the effect contractual adjustments recorded during the current period have on revenue recorded in a previous period. However, we can reasonably estimate our monthly 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; and

 

an analysis of current gross billings and receivables by payer.

 

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 April 30, 2018, and July 31, 2017, approximately 77% and 73%, respectively, of the Company’s net accounts receivable relates to its Clinical Labs business, which operates in the New York, New Jersey and Connecticut medical communities.

 

The Life Sciences segment’s accounts receivable balance includes $1.1 million or 34% and $1.1 million or 29% of foreign receivables as of April 30, 2018 and July 31, 2017.

 

Net accounts receivable

 

Billing category   As of
April 30, 2018
    As of
July 31, 2017
 
Clinical Labs                            
Third party payers   $ 5,338     49 %   $ 7,256     64 %
Patient self-pay     2,690     24       1,591     14  
Medicare     1,743     16       1,385     12  
HMO’s     1,251     11       1,169     10  
Total Clinical Labs     11,022     100 %     11,401     100 %
Total Life Sciences     3,385             3,779        
Total accounts receivable   $ 14,407           $ 15,180        
28

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

 

   Nine months ended
April 30, 2018
   Fiscal year ended
July 31, 2017
 
Beginning balance  $3,576   $3,517 
Provision for doubtful accounts   1,989    2,775 
Write-offs, net   (3,658)   (2,716)
Ending balance  $1,907   $3,576 

 

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 reduces the allowance in future accounting periods based on write-offs during those periods. The Company bases the estimate for the allowance on the evaluation of historical experience of accounts going to collections and the net amounts not received. Accounts going to collection include 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 our estimate of the uncollected portion of receivables from self-payers, including deductibles and copayments, which are subject to credit risk and patients’ ability to pay. The Company fully reserves through its contractual allowances amounts that 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 adjusts the historical collection analysis for recoveries, if any, on an on-going basis. The allowance for doubtful accounts as a percentage of total accounts receivable at April 30, 2018 and July 31, 2017 was 11.7% and 19.1%, respectively. As of April 30, 2018, the Company recorded a reclassification of approximately $1.7 million, which reduced the allowance for doubtful accounts and increased the allowance for contractual allowances; both accounts are netted against accounts receivable on the consolidated balance sheet.

 

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 uninsured patients or patients for whom primary insurance has paid but a patient 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 accurate patient 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 April 30, 2018  Total   %   Third
Party
Payers
   %   Self-Pay   %   Medicare   %   HMO’s   % 
1-30 days  $24,684    45   $15,759    43   $1,034    17   $4,627    52   $3,264    91 
31-60 days   7,790    14    5,424    15    1,115    18    1,037    12    214    6 
61-90 days   5,365    10    3,634    10    905    15    794    9    32    1 
91-120 days   3,881    7    2,437    7    787)   13    621    7    36    1 
121-150 days   2,210    4    1,392    3    470    8    346    4    2     
Greater than 150 days   11,250    20    8,076    22    1,736)   29    1,394    16    44    1 
Totals  $55,180    100%  $36,722    100%  $6,047    100%  $8,819    100%  $3,592    100%
                                                   
As of July 31, 2017  Total   %   Third
Party
Payers
   %   Self-Pay   %   Medicare   %   HMO’s   % 
1-30 days  $25,357    42   $16,683    40   $1,082    16   $4,022    60   $3,570    82 
31-60 days   8,732    15    5,723    14    1,183    17    1,294    19    532    12 
61-90 days   5,703    10    4,208    10    927    14    529    9    39    1 
91-120 days   3,749    6    2,732    6    701    10    288    4    28    1 
121-150 days   3,689    6    2,772    7    672    10    228    3    17     
Greater than 150 days   12,455    21    9,652    23    2,270    33    379    5    154    4 
Totals  $59,685    100%  $41,770    100%  $6,835    100%  $6,740    100%  $4,340    100%
29

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.

 

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 net realizable value, which approximates market. Work-in-process and finished goods inventories consist of material, labor, and manufacturing overhead. Write downs of inventories to net realizable 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, 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.

 

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 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 than not that the fair value of a reporting unit is less than its carrying amount, the Company is not required to perform a quantitative test 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 identifies the reporting units and compares the fair value of each of these reporting units to their respective carrying amount. If the carrying amount of the reporting unit is less than its fair value, no impairment exists. If the carrying amount of the reporting unit is higher than its fair value, the impairment charge is the amount by which the carrying amount exceeds its fair value, not to exceed the total amount of goodwill and intangibles allocated to the reporting unit.

 

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, 2017) 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 April 30, 2018, our assets and liabilities would decrease by $0.4 million and $0.1 million, respectively, and our net sales and net earnings (loss) would decrease by $0.9 million and $0.1 million, respectively, on an annual basis.

30

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 $1.4 million on an annual basis.

 

Interest Rate Risk

 

As of April 30, 2018, 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.

31

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, 2017 filed with the Securities and Exchange Commission, other than as noted in Note 11 to the Consolidated Financial Statements as of April 30, 2018.

 

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, 2017.

 

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: June 11, 2018 by: /s/ Barry Weiner
    President, Chief Financial Officer, Principal Accounting Officer, Treasurer and Director
32
EX-31.1 2 c91227_ex31-1.htm

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: June 11, 2018

 

  By: /s/ Elazar Rabbani, Ph.D.
    Elazar Rabbani, Ph.D.
    Chairman of the Board, Chief Executive Officer and Secretary
 
EX-31.2 3 c91227_ex31-2.htm

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: June 11, 2018

 

  By: /s/ Barry Weiner
    Barry Weiner
    President, Chief Financial Officer, Principal Accounting Officer, Treasurer and Director
 
EX-32.1 4 c91227_ex32-1.htm

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 April 30, 2018 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: June 11, 2018    
     
  By: /s/ Elazar Rabbani, Ph.D.
    Elazar Rabbani, Ph.D.
    Chairman of the Board, Chief Executive Officer and Director
 
EX-32.2 5 c91227_ex32-2.htm

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 April 30, 2018 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: June 11, 2018    
     
  By: /s/ Barry Weiner
    Barry Weiner
    President, Chief Financial Officer, Principal Accounting Officer, Treasurer and Director
 
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The consolidated balance sheet as of April 30, 2018, the consolidated statements of operations and comprehensive income (loss) for the three and nine month ended April 30, 2018 and 2017, the consolidated statements of cash flows for the nine months ended April 30, 2018 and 2017 and the consolidated statement of stockholders&#x2019; equity for the nine months ended April 30, 2018 (the &#x201c;interim statements&#x201d;) 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 interim statements should be read in conjunction with the consolidated financial statements for the year ended July 31, 2017 and notes thereto contained in the Company&#x2019;s Annual Report on Form 10-K filed with the Securities and Exchange Commission. The consolidated balance sheet at July 31, 2017 has been derived from the audited financial statements at that date. 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The company would also report provisional amounts for those specific income tax effects for which the accounting under GAAP is incomplete but a reasonable estimate can be determined. We have recorded a provisional amount which we believe is a reasonable estimate of the effects of the Act on our financial statements as of April 30, 2018. Technical corrections or other forthcoming guidance could change how we interpret provisions of the Act, which may impact our effective tax rate and could affect our deferred tax assets, tax positions and/or our tax liabilities.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">We reviewed all other recently issued accounting pronouncements and have concluded they are not applicable or not expected to be significant to the accounting for our operations.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">Certain prior period amounts have been reclassified to conform to the current period presentation. 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For the three and nine months ended April 30, 2017, approximately 987,000 and 865,000 weighted average stock options were excluded from the calculation of diluted weighted average shares outstanding because their effect would be antidilutive.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">For the three and nine months ended April 30, 2018, the effect of approximately 581,000 and 194,000 of outstanding &#x201c;out of the money&#x201d; options to purchase common shares were excluded from the calculation of diluted net income per share because their effect would be anti-dilutive. For the three and nine months ended April 30, 2017, the effect of approximately zero and 165,000 of outstanding &#x201c;out of the money&#x201d; options to purchase common shares were excluded from the calculation of diluted net income per share because their effect would be anti-dilutive.</p><br/> 431000 694000 987000 865000 581000 194000 0 165000 <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><font style="text-decoration:underline">Note 3 - Supplemental disclosure for statement of cash flows</font></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">For the nine months ended April 30, 2018 and 2017, income taxes paid by the Company were $65 and $1,021, respectively<b>.</b>&#xa0;</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">For the nine months ended April 30, 2018 and 2017, interest paid by the Company was $61 and $99, respectively.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">For the nine months ended April 30, 2018 and 2017, the Company financed $0 and $69 respectively, in machinery and transportation equipment under installment loans.&#xa0;</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">During the nine months ended April 30, 2018 certain officers of the Company exercised 340,898 stock options in non-cash transactions. The officers surrendered 106,911 shares of the Company&#x2019;s common stock to exercise the stock options. The Company recorded approximately $1,014, the market value of the surrendered shares, as treasury stock.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">During the nine months ended April 30, 2018, the Company contributed its treasury stock and issued common stock in connection with its share-based 401(k) employer match in the amount of $782. For the 2017 period, the Company issue shares of common stock in the amount of $724.</p><br/> 65000 1021000 61000 99000 0 69000 340898 106911 1014000 724000 <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><font style="text-decoration:underline">Note 4 &#x2013; Inventories</font></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">Inventories consist of the following:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">April 30,<br /> 2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">July 31,<br /> 2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; text-align: left">Raw materials</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">817</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">852</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Work in process</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,065</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,905</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Finished products</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">4,396</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">4,290</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">7,278</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">7,047</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><br/> Inventories consist of the following:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">April 30,<br /> 2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">July 31,<br /> 2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; text-align: left">Raw materials</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">817</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">852</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Work in process</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,065</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,905</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Finished products</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">4,396</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">4,290</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">7,278</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">7,047</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table> 817000 852000 2065000 1905000 4396000 4290000 <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><font style="text-decoration:underline">Note 5 &#x2013; Goodwill and intangible assets</font></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">At April 30, 2018 and July 31, 2017, the Company&#x2019;s carrying amount of goodwill, related to the Clinical Labs segment, is $7,452.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The Company&#x2019;s change in the carrying amount of intangible assets, all in the Life Sciences segment is as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 98%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1px"><b>&#xa0;</b></td><td style="padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>Gross</b></td><td style="text-align: center; padding-bottom: 1px"><b>&#xa0;</b></td><td style="text-align: center; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>Accumulated<br /> Amortization</b></td><td style="text-align: center; padding-bottom: 1px"><b>&#xa0;</b></td><td style="text-align: center; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>Net</b></td><td style="text-align: left; padding-bottom: 1px"><b>&#xa0;</b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 56%">July 31, 2017</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">27,436</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(24,541</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,895</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Amortization expense</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(742</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(742</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Foreign currency translation</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="text-align: right; border-bottom: Black 1px solid">2</td><td style="text-align: left; padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="text-align: right; border-bottom: Black 1px solid">(6</td><td style="text-align: left; padding-bottom: 1px">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="text-align: right; border-bottom: Black 1px solid">(4</td><td style="text-align: left; padding-bottom: 1px">)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">April 30, 2018</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 3px double">$</td><td style="text-align: right; border-bottom: Black 3px double">27,438</td><td style="text-align: left; padding-bottom: 3px">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 3px double">$</td><td style="text-align: right; border-bottom: Black 3px double">(25,289</td><td style="text-align: left; padding-bottom: 3px">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 3px double">$</td><td style="text-align: right; border-bottom: Black 3px double">2,149</td><td style="text-align: left; padding-bottom: 3px">&#xa0;</td></tr> </table><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">Intangible assets, all finite lived, consist of the following:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1px"><b>&#xa0;</b></td><td style="padding-bottom: 1px; text-align: center"><b>&#xa0;</b></td> <td colspan="10" style="text-align: center; border-bottom: Black 1px solid"><b>April 30, 2018</b></td><td style="padding-bottom: 1px; text-align: center"><b>&#xa0;</b></td><td style="padding-bottom: 1px; text-align: center"><b>&#xa0;</b></td> <td colspan="10" style="text-align: center; border-bottom: Black 1px solid"><b>July 31, 2017</b></td><td style="padding-bottom: 1px"><b>&#xa0;</b></td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Gross</td><td style="padding-bottom: 1px; font-weight: bold; text-align: right">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px; text-align: right">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Accumulated<br /> Amortization</td><td style="padding-bottom: 1px; font-weight: bold; text-align: right">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px; text-align: right">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Net</td><td style="padding-bottom: 1px; font-weight: bold; text-align: right">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px; text-align: right">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Gross</td><td style="padding-bottom: 1px; font-weight: bold; text-align: right">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px; text-align: right">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Accumulated<br /> Amortization</td><td style="padding-bottom: 1px; font-weight: bold; text-align: right">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px; text-align: right">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Net</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 41%; text-indent: -8.65pt; padding-left: 8.65pt">Patents</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">11,027</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 1%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">(10,971</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">56</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 1%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">11,027</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 1%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">(10,951</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">76</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; text-indent: -8.65pt; padding-left: 8.65pt">Customer relationships</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">11,892</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(9,799</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,093</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">11,881</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(9,083</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,798</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Website and acquired content</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,010</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(1,010</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,011</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(1,011</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Licensed technology and other</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">492</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(492</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">484</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(463</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">21</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">Trademarks</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,017</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(3,017</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,033</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(3,033</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">27,438</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(25,289</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,149</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">27,436</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(24,541</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,895</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">At April 30, 2018, information with respect to intangibles assets acquired is as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1px">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Useful life<br /> assigned</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Weighted average<br />remaining useful life</td> <td style="padding-bottom: 1px">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 65%; text-align: left">Customer relationships </td><td style="width: 2%">&#xa0;</td> <td style="width: 10%; text-align: center">8 -15 years</td><td style="width: 2%">&#xa0;</td> <td style="width: 20%; text-align: center">2.5 years</td> <td style="width: 1%">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left">Other intangibles </td><td>&#xa0;</td> <td style="text-align: center">10 years</td><td>&#xa0;</td> <td style="text-align: center">1.5 years</td> <td>&#xa0;</td></tr> </table><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">At April 30, 2018, the weighted average remaining useful life of intangible assets is approximately two years.</p><br/> 7452000 7452000 P2Y The Company&#x2019;s change in the carrying amount of intangible assets, all in the Life Sciences segment is as follows:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 98%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1px"><b>&#xa0;</b></td><td style="padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>Gross</b></td><td style="text-align: center; padding-bottom: 1px"><b>&#xa0;</b></td><td style="text-align: center; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>Accumulated<br /> Amortization</b></td><td style="text-align: center; padding-bottom: 1px"><b>&#xa0;</b></td><td style="text-align: center; padding-bottom: 1px"><b>&#xa0;</b></td> <td colspan="2" style="border-bottom: Black 1px solid; text-align: center"><b>Net</b></td><td style="text-align: left; padding-bottom: 1px"><b>&#xa0;</b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 56%">July 31, 2017</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">27,436</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(24,541</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,895</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Amortization expense</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(742</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(742</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Foreign currency translation</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="text-align: right; border-bottom: Black 1px solid">2</td><td style="text-align: left; padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="text-align: right; border-bottom: Black 1px solid">(6</td><td style="text-align: left; padding-bottom: 1px">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 1px solid">&#xa0;</td><td style="text-align: right; border-bottom: Black 1px solid">(4</td><td style="text-align: left; padding-bottom: 1px">)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">April 30, 2018</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 3px double">$</td><td style="text-align: right; border-bottom: Black 3px double">27,438</td><td style="text-align: left; padding-bottom: 3px">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 3px double">$</td><td style="text-align: right; border-bottom: Black 3px double">(25,289</td><td style="text-align: left; padding-bottom: 3px">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="text-align: left; border-bottom: Black 3px double">$</td><td style="text-align: right; border-bottom: Black 3px double">2,149</td><td style="text-align: left; padding-bottom: 3px">&#xa0;</td></tr> </table> 27436000 -24541000 2895000 -742000 2000 -6000 -4000 27438000 -25289000 2149000 Intangible assets, all finite lived, consist of the following:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1px"><b>&#xa0;</b></td><td style="padding-bottom: 1px; text-align: center"><b>&#xa0;</b></td> <td colspan="10" style="text-align: center; border-bottom: Black 1px solid"><b>April 30, 2018</b></td><td style="padding-bottom: 1px; text-align: center"><b>&#xa0;</b></td><td style="padding-bottom: 1px; text-align: center"><b>&#xa0;</b></td> <td colspan="10" style="text-align: center; border-bottom: Black 1px solid"><b>July 31, 2017</b></td><td style="padding-bottom: 1px"><b>&#xa0;</b></td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Gross</td><td style="padding-bottom: 1px; font-weight: bold; text-align: right">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px; text-align: right">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Accumulated<br /> Amortization</td><td style="padding-bottom: 1px; font-weight: bold; text-align: right">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px; text-align: right">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Net</td><td style="padding-bottom: 1px; font-weight: bold; text-align: right">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px; text-align: right">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Gross</td><td style="padding-bottom: 1px; font-weight: bold; text-align: right">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px; text-align: right">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Accumulated<br /> Amortization</td><td style="padding-bottom: 1px; font-weight: bold; text-align: right">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px; text-align: right">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">Net</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 41%; text-indent: -8.65pt; padding-left: 8.65pt">Patents</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">11,027</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 1%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">(10,971</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">56</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 1%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">11,027</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 1%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">(10,951</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right">76</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; text-indent: -8.65pt; padding-left: 8.65pt">Customer relationships</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">11,892</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(9,799</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,093</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">11,881</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(9,083</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,798</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Website and acquired content</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,010</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(1,010</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,011</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(1,011</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Licensed technology and other</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">492</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(492</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">484</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(463</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">21</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">Trademarks</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,017</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(3,017</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,033</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(3,033</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">27,438</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(25,289</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,149</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">27,436</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(24,541</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,895</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table> 11027000 10971000 56000 11027000 10951000 76000 11892000 9799000 2093000 11881000 9083000 2798000 1010000 1010000 1011000 1011000 492000 492000 484000 463000 21000 3017000 3017000 3033000 3033000 27438000 25289000 2149000 27436000 24541000 2895000 At April 30, 2018, information with respect to intangibles assets acquired is as follows:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1px">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Useful life<br /> assigned</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Weighted average<br />remaining useful life</td> <td style="padding-bottom: 1px">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 65%; text-align: left">Customer relationships </td><td style="width: 2%">&#xa0;</td> <td style="width: 10%; text-align: center">8 -15 years</td><td style="width: 2%">&#xa0;</td> <td style="width: 20%; text-align: center">2.5 years</td> <td style="width: 1%">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left">Other intangibles </td><td>&#xa0;</td> <td style="text-align: center">10 years</td><td>&#xa0;</td> <td style="text-align: center">1.5 years</td> <td>&#xa0;</td></tr> </table> P8Y P15Y P2Y6M P10Y P1Y6M <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><font style="text-decoration:underline">Note 6 &#x2013; Accrued Liabilities</font></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">Accrued liabilities consist of the following:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">April 30,<br /> 2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">July 31,<br /> 2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; text-align: left">Payroll, benefits, and commissions</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">4,343</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">4,092</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Legal fee expense</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,401</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">599</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Professional fees</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">764</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">442</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Research and development</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">143</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">Other</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2,287</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,444</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">9,795</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">6,720</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">At April 30, 2018, other accrued liabilities primarily include $400 for a legal settlement.</p><br/> 400000 Accrued liabilities consist of the following:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">April 30,<br /> 2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">July 31,<br /> 2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; text-align: left">Payroll, benefits, and commissions</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">4,343</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">4,092</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Legal fee expense</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,401</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">599</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Professional fees</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">764</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">442</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Research and development</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">143</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">Other</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2,287</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,444</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">9,795</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">6,720</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table> 4343000 4092000 2401000 599000 764000 442000 143000 2287000 1444000 <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><font style="text-decoration:underline">Note 7 &#x2013; Other Liabilities</font></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">Other liabilities consist of the following:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">April 30,<br /> 2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">July 31,<br /> 2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; text-align: left">Capital lease obligations, net of short term</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">397</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">551</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Accrued legal settlement</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">410</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Installment loans, net of short term</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">7</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">22</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">404</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">983</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">As of April 30, 2018, future minimum payments under the capital leases, net of interest of $75 aggregates $570 including a short term debt portion of $173 included in other current liabilities. Future minimum payments under the installment loans aggregate $44, including a short term portion of $37 included in other current liabilities.</p><br/> 75000 570000 173000 44000 37000 Other liabilities consist of the following:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">April 30,<br /> 2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">July 31,<br /> 2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 70%; text-align: left">Capital lease obligations, net of short term</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">397</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">551</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Accrued legal settlement</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">410</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Installment loans, net of short term</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">7</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">22</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">404</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">983</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> </table> 397000 551000 410000 7000 22000 404000 983000 <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><font style="text-decoration:underline">Note 8 &#x2013; Stockholders&#x2019; Equity</font></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b><i>Controlled Equity Offering</i></b></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The Company has a Controlled Equity Offering<sup>SM</sup> Sales Agreement (the &#x201c;Sales Agreement&#x201d;) with Cantor Fitzgerald&#xa0;&amp; Co., as sales agent (&#x201c;Cantor&#x201d;). Under the Sales Agreement, the Company may offer and sell, from time to time, through Cantor, shares of the Company&#x2019;s common stock, par value $0.01 per share (the &#x201c;Common Stock&#x201d;). The Company pays Cantor a commission of 3.0% of the aggregate gross proceeds received under the Sale 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 initial agreement contemplated the sale of shares of the Company&#x2019;s common stock having an aggregate offering price of up to $20.0 million. In December 2014, the Sales Agreement was amended in order for the Company to offer and sell additional shares of Common Stock having an aggregate offering price of $20.0 million.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">On September 1, 2017, the Company filed with the SEC a &#x201c;shelf&#x201d; registration and sales agreement prospectus covering the offering, issuance and sale of our Common Stock that may be issued and sold under the existing Sales Agreement in an aggregate amount of up to $19.15 million. A total of $150 million of securities may be sold under this shelf registration, which was declared effective September 15, 2017.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">During the nine months ended April 30, 2018 and during fiscal 2017, the Company did not sell any shares of Common Stock under the Sales Agreement.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b><i>Treasury stock</i></b></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">During the nine months ended April 30, 2018, certain officers of the Company exercised 340,898 stock options in non-cash transactions. The officers surrendered 106,911 shares of the Company&#x2019;s common stock to exercise the stock options. The Company recorded approximately $1,014, the market value of the surrendered shares, as treasury stock. All of the treasury shares were used in the share-based 401(k) employer match made during the nine months ended April 30, 2018.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b><i>Share-based compensation</i></b></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The Company has an incentive stock option and restricted stock award plan (the &#x201c;2005 Plan&#x201d;), and a long term incentive share award plan, (the &#x201c;2011 Plan&#x201d;). The 2011 Incentive Plan, which is the only plan from which awards may 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.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">At the 2017 annual meeting, shareholders approved the amendment and restatement of the 2011 Plan, including an increase in the number of shares of common stock authorized for grant under the 2011 Plan, from 3 million shares to 5 million shares.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The amounts of share-based compensation expense recognized in the periods presented are as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center">Three months ended<br /> April 30,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center">Nine months ended<br /> April 30,</td><td style="font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 42%; text-align: left">Stock options </td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">202</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">204</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 4%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">609</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">586</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Restricted stock </td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">5</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">8</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">15</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">204</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">209</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">617</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">601</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">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:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center">Three months ended<br /> April 30,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center">Nine months ended<br /> April 30,</td><td style="font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 42%; text-align: left">Cost of clinical laboratory services </td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 4%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">5</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Selling, general and administrative </td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">204</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">207</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">617</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">596</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">204</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">209</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">617</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">601</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">No excess tax benefits were recognized during the nine month periods ended April 30, 2018 and 2017.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b><i>Stock Option Plans</i></b></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The following table summarizes stock option activity during the nine month period ended April 30, 2018:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Options</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Weighted<br /> Average<br /> Exercise<br /> Price</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Weighted<br /> Average<br /> Remaining<br /> Contractual <br /> Term</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Aggregate<br /> Intrinsic<br /> Value (000s)</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 44%">Outstanding at July 31, 2017 </td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 10%; text-align: right">2,130,995</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">4.26</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 12%">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 10%; text-align: right">&#xa0;</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Awarded </td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">117,580</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">8.36</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Exercised </td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(615,624</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.99</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">5,896</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Cancelled or expired </td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(29,334</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">$</td><td style="padding-bottom: 1px; text-align: right">5.94</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: right">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Outstanding at end of period </td><td style="padding-bottom: 3px">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left; border-bottom: Black 3px double">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right">1,603,617</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left">$</td><td style="padding-bottom: 3px; text-align: right">5.02</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="text-align: right; padding-bottom: 3px">2.6 years</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left">$</td><td style="padding-bottom: 3px; text-align: right">4,344</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Exercisable at end of period </td><td>&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right">1,168,489</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">4.25</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">1.2 years</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2,261</td><td style="text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">As of April 30, 2018, the total future compensation cost related to non-vested options, not yet recognized in the statements of operations, was $0.9 million and the weighted average period over which the remaining expense of these awards is expected to be recognized is fourteen months.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The intrinsic value of in the money stock option awards at the end of the period represents the Company&#x2019;s closing stock price on the last trading day of the period in excess of the exercise price multiplied by the number of options.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b><i>Restricted Stock Awards</i></b></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">A summary of the activity pursuant to the Company&#x2019;s unvested restricted stock awards for the nine months ended April 30, 2018 is as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Awards</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Weighted<br /> Average<br /> Award Price</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 62%">Outstanding at July 31, 2017</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 14%; text-align: right">7,436</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4.45</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Awarded</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Vested</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(2,562</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">(5.51</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">Forfeited</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(386</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: right">(5.62</td><td style="padding-bottom: 1px; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Unvested at end of period</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right">4,488</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left">$</td><td style="padding-bottom: 3px; text-align: right">2.97</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The fair value of a restricted stock award is determined based on the closing stock price on the award date. As of April 30, 2018, 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 twenty-two months.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The fair value of the awards that vested during the nine months ended April 30, 2018 and 2017 was $22 and $19, respectively.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The total number of shares available for grant as equity awards from the 2011 Incentive Plan is approximately 2,266,800 shares as of April 30, 2018.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">During the nine months ended April 30, 2018, the Company contributed $782 to match its employees&#x2019; 401(k) contributions with 106,911 shares of treasury stock and by issuing 37,580 shares of its common stock, representing the fair value of the shares at the match date, and adjusted treasury stock, common stock and additional paid in capital by the same amount.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">During the nine months ended April 30, 2017, the Company contributed $724 to match its employees&#x2019; 401(k) contributions by issuing 91,541 shares of its common stock, representing the fair value of the shares at the match date, and adjusted common stock and additional paid in capital by the same amount.</p><br/> 0.030 20000000 20000000 19150000 150000000 3000000 5000000 0 0 900000 P14M 100000 P22M 22000 19000 2266800 724000 91541 The amounts of share-based compensation expense recognized in the periods presented are as follows:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center">Three months ended<br /> April 30,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center">Nine months ended<br /> April 30,</td><td style="font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 42%; text-align: left">Stock options </td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">202</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">204</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 4%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">609</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">586</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Restricted stock </td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">5</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">8</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">15</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">204</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">209</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">617</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">601</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table> 202000 204000 609000 586000 2000 5000 8000 15000 204000 209000 617000 601000 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:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center">Three months ended<br /> April 30,</td><td style="font-weight: bold">&#xa0;</td><td style="font-weight: bold">&#xa0;</td> <td colspan="6" style="font-weight: bold; text-align: center">Nine months ended<br /> April 30,</td><td style="font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2018</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: right; border-bottom: Black 1px solid">2017</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 42%; text-align: left">Cost of clinical laboratory services </td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 4%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">5</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Selling, general and administrative </td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">204</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">207</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">617</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">596</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">204</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">209</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">617</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">601</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table> 2000 5000 204000 207000 617000 596000 204000 209000 617000 601000 The following table summarizes stock option activity during the nine month period ended April 30, 2018:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Options</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Weighted<br /> Average<br /> Exercise<br /> Price</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Weighted<br /> Average<br /> Remaining<br /> Contractual <br /> Term</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Aggregate<br /> Intrinsic<br /> Value (000s)</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 44%">Outstanding at July 31, 2017 </td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 10%; text-align: right">2,130,995</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">4.26</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 12%">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 10%; text-align: right">&#xa0;</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Awarded </td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">117,580</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">8.36</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Exercised </td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(615,624</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2.99</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">5,896</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Cancelled or expired </td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(29,334</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">$</td><td style="padding-bottom: 1px; text-align: right">5.94</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: right">&#xa0;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Outstanding at end of period </td><td style="padding-bottom: 3px">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left; border-bottom: Black 3px double">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right">1,603,617</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left">$</td><td style="padding-bottom: 3px; text-align: right">5.02</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="text-align: right; padding-bottom: 3px">2.6 years</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left">$</td><td style="padding-bottom: 3px; text-align: right">4,344</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Exercisable at end of period </td><td>&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right">1,168,489</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">4.25</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: right">1.2 years</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2,261</td><td style="text-align: left">&#xa0;</td></tr> </table> 2130995 4.26 117580 8.36 615624 2.99 5896000 29334 5.94 1603617 5.02 P2Y219D 4344000 1168489 4.25 P1Y73D 2261000 A summary of the activity pursuant to the Company&#x2019;s unvested restricted stock awards for the nine months ended April 30, 2018 is as follows:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Awards</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Weighted<br /> Average<br /> Award Price</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="width: 62%">Outstanding at July 31, 2017</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 14%; text-align: right">7,436</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 3%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">4.45</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Awarded</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Vested</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(2,562</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">(5.51</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1px">Forfeited</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(386</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px; text-align: right">(5.62</td><td style="padding-bottom: 1px; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Unvested at end of period</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">&#xa0;</td><td style="border-bottom: Black 3px double; text-align: right">4,488</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="padding-bottom: 3px; text-align: left">$</td><td style="padding-bottom: 3px; text-align: right">2.97</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table> 7436 4.45 2562 -5.51 386 -5.62 4488 2.97 <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><font style="text-decoration:underline">Note 9 &#x2013; Income taxes</font></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">On December 22, 2017, legislation commonly known as the Tax Cuts and Jobs Act of 2017 (the &#x201c;Act&#x201d;) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The Company calculated its best estimate of the impact of the Act in accordance with its understanding of the Act and guidance available as of the date of this filing and recorded $1.1 million as an income tax benefit in the nine months ended April 30, 2018, the period in which the legislation was enacted, related to a credit for alternative minimum taxes (AMT) paid in prior periods. A provisional amount related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was fully offset by an equivalent adjustment to the deferred tax valuation allowance. No provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was deemed necessary.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">On December 22, 2017, Staff Accounting Bulletin No. 118 (&#x201c;SAB 118&#x201d;) was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, the Company has determined that the $1.1 million income tax benefit, which relates to the AMT credit, is a provisional amount and a reasonable estimate at April 30, 2018.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The Company&#x2019;s effective tax rate benefit for the three and nine months ended April 30, 2018 was zero and 24.1%, respectfully and was based on the refundable federal AMT credit. There was no tax provision or benefit for the 2017 periods. The Company&#x2019;s effective tax rate for all periods differed from the expected net operating loss carryforward benefit at the U.S. federal statutory rate 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.</p><br/> 0.35 0.21 1100000 0.00 0.241 0 0 <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><font style="text-decoration:underline">Note 10 &#x2013; Segment reporting</font></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">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 Life Sciences segment develops, manufactures, and markets products to research and pharmaceutical customers. The Therapeutic segment conducts research and development activities for therapeutic drug candidates.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The Company evaluates segment performance based on segment income (loss) before taxes. Costs excluded from segment income (loss) before taxes and reported as &#x201c;Other&#x201d; consist of corporate general and administrative costs which are not allocable to the three reportable segments. Legal fee expense incurred to defend the Company&#x2019;s intellectual property and other general corporate matters is considered a component of the Other segment. Legal fee expense specific to other segments&#x2019; activities has been allocated to those segments. When recognized, legal settlements, net represents activities for which royalties would have been received by the Company&#x2019;s Life Sciences segment had the Company had agreements in place with plaintiffs for the patents or products covered by the settlements.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">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&#x2019;s Annual Report on Form 10-K for the year ended July 31, 2017.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The following financial information represents the operating results of the reportable segments of the Company:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td colspan="21"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b>Three months ended April 30, 2018</b></p></td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Clinical<br /> Labs</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Life<br /> Sciences</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Therapeutics</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Other</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Consolidated</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline">Revenues:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 40%; text-align: left">Clinical laboratory services</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">18,137</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">18,137</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">7,415</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">7,415</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Royalty and license fee income</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">78</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">78</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">18,137</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">7,493</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">25,630</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-decoration: underline; text-align: left">Operating costs and expenses:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,995</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,995</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,562</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,562</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Research and development</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">576</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">223</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">799</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Selling, general and administrative</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">6,252</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,974</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">1,799</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">11,025</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Provision for uncollectible accounts receivable</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">400</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(4</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">396</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Legal fee expense</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">25</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">19</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,607</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,651</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Total operating costs and expenses</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">17,672</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">7,127</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">223</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,406</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">28,428</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Operating income (loss)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">465</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">366</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(223</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(3,406</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(2,798</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Other income (expense):</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Interest</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(22</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">12</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">237</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">227</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Other</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">15</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">17</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Foreign exchange loss</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(462</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(462</td><td style="padding-bottom: 1px; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Income (loss) before income taxes</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">458</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(82</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(223</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(3,169</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(3,016</td><td style="padding-bottom: 3px; text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Depreciation and amortization included above</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">437</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">358</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">20</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">815</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Share-based compensation included in above:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Selling, general and administrative</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">26</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">17</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">161</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">204</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">26</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">17</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">161</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">204</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Capital expenditures</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">465</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">96</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">561</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td colspan="21"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b>Three months ended April 30, 2017</b></p></td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Clinical<br /> Labs</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Life<br /> Sciences</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Therapeutics</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Other</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Consolidated</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline">Revenues:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 40%; text-align: left">Clinical laboratory services</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">19,584</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">19,584</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">7,312</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">7,312</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Royalty and license fee income</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">193</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">193</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">19,584</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">7,505</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">27,089</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-decoration: underline; text-align: left">Operating costs and expenses:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">11,334</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">11,334</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,582</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,582</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Research and development</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">552</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">214</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">766</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Selling, general and administrative</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">6,118</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,745</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">1,671</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,534</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Provision for uncollectible accounts receivable</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">650</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(30</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">620</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Legal fee expense</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">4</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">42</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">466</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">512</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Total operating costs and expenses</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">18,106</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">6,891</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">214</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2,137</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">27,348</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Operating income (loss)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,478</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">614</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(214</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(2,137</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(259</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Other income (expense):</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Interest</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(28</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">12</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">131</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">115</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Other</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">7</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(98</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">17</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(74</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Foreign exchange gain</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">147</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">147</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Income (loss) before income taxes</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,457</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">675</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(214</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(1,989</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(71</td><td style="padding-bottom: 3px; text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Depreciation and amortization included above</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">390</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">423</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">37</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">850</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Share-based compensation included in above:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Selling, general and administrative</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">38</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">23</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">146</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">207</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">40</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">23</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">146</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">209</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Capital expenditures</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">483</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">252</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">735</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td colspan="21"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b>Nine months ended April 30, 2018</b></p></td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Clinical<br /> Labs</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Life<br /> Sciences</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Therapeutics</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Other</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Consolidated</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline">Revenues:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 40%; text-align: left">Clinical laboratory services</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">58,001</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">58,001</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">21,618</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">21,618</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Royalty and license fee income</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">639</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">639</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">58,001</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">22,257</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">80,258</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-decoration: underline; text-align: left">Operating costs and expenses:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">34,767</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">34,767</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,828</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,828</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Research and development</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,690</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">668</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,358</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Selling, general and administrative</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">18,454</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">8,487</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">6,045</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">32,986</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Provision for uncollectible accounts receivable</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,000</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(11</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,989</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Legal fee expense</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">46</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">47</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,689</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,782</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Total operating costs and expenses</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">55,267</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">21,041</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">668</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">9,734</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">86,710</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Operating income (loss)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,734</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,216</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(668</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(9,734</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(6,452</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Other income (expense):</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Interest</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(70</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">35</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">604</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">569</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Other</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">32</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">44</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">86</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Foreign exchange gain</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">143</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">143</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Income (loss) before income taxes</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,696</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,404</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(668</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(9,086</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(5,654</td><td style="padding-bottom: 3px; text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Depreciation and amortization included above</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,254</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,039</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">57</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,350</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Share-based compensation included in above:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Selling, general and administrative</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">86</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">61</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">470</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">617</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">86</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">61</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">470</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">617</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Capital expenditures</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,459</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">167</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,626</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td colspan="21"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b>Nine months ended April 30, 2017</b></p></td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Clinical<br /> Labs</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Life<br /> Sciences</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Therapeutics</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Other</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Consolidated</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline">Revenues:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 40%; text-align: left">Clinical laboratory services</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">56,979</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">56,979</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">21,721</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">21,721</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Royalty and license fee income</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">933</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">933</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">56,979</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">22,654</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">79,633</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-decoration: underline; text-align: left">Operating costs and expenses:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">33,282</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">33,282</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,411</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,411</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Research and development</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,695</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">376</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,071</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Selling, general and administrative</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">17,967</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">8,596</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">6,683</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">33,246</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Provision for uncollectible accounts receivable</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,910</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">58</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,968</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Legal fee expense</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">105</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">70</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,079</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,254</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Total operating costs and expenses</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">53,264</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">20,830</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">376</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">7,762</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">82,232</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Operating income (loss)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,715</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,824</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(376</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(7,657</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(2,599</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Other income (expense):</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Interest</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(85</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">34</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">291</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">240</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Other</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">126</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(98</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">41</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">69</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Foreign exchange loss</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(308</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(308</td><td style="padding-bottom: 1px; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Income (loss) before income taxes</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">3,756</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,452</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(376</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(7,430</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(2,598</td><td style="padding-bottom: 3px; text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Depreciation and amortization included above</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,185</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,432</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">75</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,692</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Share-based compensation included in above:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">5</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">5</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Selling, general and administrative</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">74</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">49</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">473</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">596</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">79</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">49</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">473</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">601</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Capital expenditures</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,070</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">354</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,424</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><br/> 3 The following financial information represents the operating results of the reportable segments of the Company:<br /><br /><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td colspan="21"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b>Three months ended April 30, 2018</b></p></td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Clinical<br /> Labs</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Life<br /> Sciences</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Therapeutics</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Other</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Consolidated</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline">Revenues:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 40%; text-align: left">Clinical laboratory services</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">18,137</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">18,137</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">7,415</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">7,415</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Royalty and license fee income</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">78</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">78</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">18,137</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">7,493</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">25,630</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-decoration: underline; text-align: left">Operating costs and expenses:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,995</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,995</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,562</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,562</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Research and development</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">576</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">223</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">799</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Selling, general and administrative</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">6,252</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,974</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">1,799</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">11,025</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Provision for uncollectible accounts receivable</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">400</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(4</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">396</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Legal fee expense</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">25</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">19</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,607</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,651</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Total operating costs and expenses</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">17,672</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">7,127</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">223</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,406</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">28,428</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Operating income (loss)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">465</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">366</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(223</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(3,406</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(2,798</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Other income (expense):</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Interest</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(22</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">12</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">237</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">227</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Other</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">15</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">17</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Foreign exchange loss</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(462</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(462</td><td style="padding-bottom: 1px; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Income (loss) before income taxes</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">458</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(82</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(223</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(3,169</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(3,016</td><td style="padding-bottom: 3px; text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Depreciation and amortization included above</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">437</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">358</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">20</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">815</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Share-based compensation included in above:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Selling, general and administrative</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">26</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">17</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">161</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">204</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">26</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">17</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">161</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">204</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Capital expenditures</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">465</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">96</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">561</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td colspan="21"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b>Three months ended April 30, 2017</b></p></td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Clinical<br /> Labs</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Life<br /> Sciences</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Therapeutics</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Other</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Consolidated</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline">Revenues:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 40%; text-align: left">Clinical laboratory services</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">19,584</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">19,584</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">7,312</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">7,312</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Royalty and license fee income</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">193</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">193</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">19,584</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">7,505</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">27,089</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-decoration: underline; text-align: left">Operating costs and expenses:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">11,334</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">11,334</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,582</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,582</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Research and development</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">552</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">214</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">766</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Selling, general and administrative</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">6,118</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,745</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">1,671</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,534</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Provision for uncollectible accounts receivable</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">650</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(30</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">620</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Legal fee expense</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">4</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">42</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">466</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">512</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Total operating costs and expenses</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">18,106</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">6,891</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">214</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">2,137</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">27,348</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Operating income (loss)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,478</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">614</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(214</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(2,137</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(259</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Other income (expense):</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Interest</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(28</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">12</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">131</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">115</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Other</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">7</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(98</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">17</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(74</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Foreign exchange gain</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">147</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">147</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Income (loss) before income taxes</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,457</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">675</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(214</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(1,989</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(71</td><td style="padding-bottom: 3px; text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Depreciation and amortization included above</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">390</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">423</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">37</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">850</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Share-based compensation included in above:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">2</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Selling, general and administrative</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">38</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">23</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">146</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">207</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">40</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">23</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">146</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">209</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Capital expenditures</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">483</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">252</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">735</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td colspan="21"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b>Nine months ended April 30, 2018</b></p></td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Clinical<br /> Labs</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Life<br /> Sciences</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Therapeutics</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Other</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Consolidated</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline">Revenues:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 40%; text-align: left">Clinical laboratory services</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">58,001</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">58,001</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">21,618</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">21,618</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Royalty and license fee income</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">639</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">639</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">58,001</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">22,257</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">80,258</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-decoration: underline; text-align: left">Operating costs and expenses:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">34,767</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">34,767</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,828</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,828</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Research and development</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,690</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">668</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,358</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Selling, general and administrative</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">18,454</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">8,487</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">6,045</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">32,986</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Provision for uncollectible accounts receivable</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,000</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(11</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,989</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Legal fee expense</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">46</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">47</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,689</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">3,782</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Total operating costs and expenses</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">55,267</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">21,041</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">668</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">9,734</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">86,710</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Operating income (loss)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,734</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,216</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(668</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(9,734</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(6,452</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Other income (expense):</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Interest</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(70</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">35</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">604</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">569</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Other</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">32</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">44</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">86</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Foreign exchange gain</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">143</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">143</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Income (loss) before income taxes</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,696</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,404</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(668</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(9,086</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(5,654</td><td style="padding-bottom: 3px; text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Depreciation and amortization included above</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,254</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,039</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">57</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,350</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Share-based compensation included in above:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Selling, general and administrative</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">86</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">61</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">470</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">617</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">86</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">61</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">470</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">617</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Capital expenditures</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,459</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">167</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,626</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif"> <tr style="vertical-align: bottom"> <td colspan="21"><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b>Nine months ended April 30, 2017</b></p></td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Clinical<br /> Labs</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Life<br /> Sciences</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Therapeutics</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Other</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td><td style="font-weight: bold; padding-bottom: 1px">&#xa0;</td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1px solid">Consolidated</td><td style="padding-bottom: 1px; font-weight: bold">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline">Revenues:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="width: 40%; text-align: left">Clinical laboratory services</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">56,979</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 8%; text-align: right">&#x2014;</td><td style="width: 1%; text-align: left">&#xa0;</td><td style="width: 2%">&#xa0;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 8%; text-align: right">56,979</td><td style="width: 1%; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">21,721</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">21,721</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Royalty and license fee income</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">933</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">933</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="padding-bottom: 1px">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">56,979</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">22,654</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">79,633</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-decoration: underline; text-align: left">Operating costs and expenses:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">33,282</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">33,282</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of product revenues</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,411</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">10,411</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Research and development</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,695</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">376</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">2,071</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Selling, general and administrative</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">17,967</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">8,596</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">6,683</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">33,246</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left">Provision for uncollectible accounts receivable</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,910</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">58</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,968</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Legal fee expense</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">105</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">70</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,079</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">1,254</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Total operating costs and expenses</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">53,264</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">20,830</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">376</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">7,762</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">82,232</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Operating income (loss)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">3,715</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">1,824</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(376</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(7,657</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(2,599</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Other income (expense):</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td>Interest</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(85</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">34</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">291</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">240</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td>Other</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">126</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">(98</td><td style="text-align: left">)</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">41</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">69</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1px">Foreign exchange loss</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(308</td><td style="padding-bottom: 1px; text-align: left">)</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">(308</td><td style="padding-bottom: 1px; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Income (loss) before income taxes</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">3,756</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,452</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(376</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(7,430</td><td style="padding-bottom: 3px; text-align: left">)</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">(2,598</td><td style="padding-bottom: 3px; text-align: left">)</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 3px">Depreciation and amortization included above</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,185</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,432</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">75</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">2,692</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-decoration: underline; text-align: left">Share-based compensation included in above:</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Cost of clinical laboratory services</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">5</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#x2014;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">$</td><td style="text-align: right">5</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 1px">Selling, general and administrative</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">74</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">49</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">&#x2014;</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">$</td><td style="border-bottom: Black 1px solid; text-align: right">473</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td><td style="padding-bottom: 1px">&#xa0;</td> <td style="border-bottom: Black 1px solid; text-align: left">&#xa0;</td><td style="border-bottom: Black 1px solid; text-align: right">596</td><td style="padding-bottom: 1px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 3px">Total</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">79</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">49</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">473</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">601</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom"> <td>&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td><td>&#xa0;</td> <td style="text-align: left">&#xa0;</td><td style="text-align: right">&#xa0;</td><td style="text-align: left">&#xa0;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(229,255,255)"> <td style="text-align: left; padding-bottom: 3px">Capital expenditures</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,070</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">354</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">&#x2014;</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td><td style="padding-bottom: 3px">&#xa0;</td> <td style="border-bottom: Black 3px double; text-align: left">$</td><td style="border-bottom: Black 3px double; text-align: right">1,424</td><td style="padding-bottom: 3px; text-align: left">&#xa0;</td></tr> </table> 18137000 18137000 7415000 7415000 78000 78000 18137000 7493000 25630000 10995000 10995000 3562000 3562000 576000 223000 799000 6252000 2974000 1799000 11025000 400000 -4000 396000 25000 19000 1607000 1651000 17672000 7127000 223000 3406000 28428000 465000 366000 -223000 -3406000 -2798000 -22000 12000 237000 227000 15000 2000 17000 -462000 -462000 458000 -82000 -223000 -3169000 -3016000 437000 358000 20000 815000 26000 17000 161000 204000 26000 17000 161000 204000 465000 96000 561000 19584000 19584000 7312000 7312000 193000 193000 19584000 7505000 27089000 11334000 11334000 3582000 3582000 552000 214000 766000 6118000 2745000 1671000 10534000 650000 -30000 620000 4000 42000 466000 512000 18106000 6891000 214000 2137000 27348000 1478000 614000 -214000 -2137000 -259000 -28000 12000 131000 115000 7000 -98000 17000 -74000 147000 147000 1457000 675000 -214000 -1989000 -71000 390000 423000 37000 850000 2000 2000 38000 23000 146000 207000 40000 23000 146000 209000 483000 252000 735000 58001000 58001000 21618000 21618000 639000 639000 58001000 22257000 80258000 34767000 34767000 10828000 10828000 1690000 668000 2358000 18454000 8487000 6045000 32986000 2000000 -11000 1989000 46000 47000 3689000 3782000 55267000 21041000 668000 9734000 86710000 2734000 1216000 -668000 -9734000 -6452000 -70000 35000 604000 569000 32000 10000 44000 86000 143000 143000 2696000 1404000 -668000 -9086000 -5654000 1254000 1039000 57000 2350000 86000 61000 470000 617000 86000 61000 470000 617000 1459000 167000 1626000 56979000 56979000 21721000 21721000 933000 933000 56979000 22654000 79633000 33282000 33282000 10411000 10411000 1695000 376000 2071000 17967000 8596000 6683000 33246000 1910000 58000 1968000 105000 70000 1079000 1254000 53264000 20830000 376000 7762000 82232000 3715000 1824000 -376000 -7657000 -2599000 -85000 34000 291000 240000 126000 -98000 41000 69000 -308000 -308000 3756000 1452000 -376000 -7430000 -2598000 1185000 1432000 75000 2692000 5000 5000 74000 49000 473000 596000 79000 49000 473000 601000 1070000 354000 1424000 <p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0"><b><font style="text-decoration:underline">Note 11 &#x2013; Contingencies</font></b></p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">The Company is engaged in litigation in the United States District Court for the Southern District of New York against Roche Diagnostic GmbH and its related company Roche Molecular Systems, Inc. (&#x201c;Roche&#x201d;), as declaratory judgment defendant. This case was commenced in May 2004. Roche seeks a declaratory judgment of non-breach of contract and patent invalidity against the Company. Roche has also asserted tort claims against the Company. The Company has asserted breach of contract and patent infringement causes of action against Roche. There has been extensive discovery in the case. In 2011, Roche moved for summary judgment of non-infringement regarding the Company&#x2019;s patent claims. In 2012, the motion was granted in part and denied in part. In December 2012, Roche moved for summary judgment on the Company&#x2019;s non-patent claims. Additional discovery was taken and the Company responded to the motions in May 2013. In December 2013, the Court granted in part and denied in part Roche&#x2019;s summary judgment motion. In October 2014, the Court ordered that damages discovery concerning the Company&#x2019;s remaining contract and patent claims and Roche&#x2019;s claims should be completed by the end of January 2015, and expert discovery should be completed following the Court&#x2019;s not-yet-issued claim construction ruling concerning the Company&#x2019;s patent infringement claim against Roche. Roche dropped its tort claims during damages discovery. On October 2, 2017, the Court issued its claim construction ruling. On May 11, 2018, the Court issued a revised scheduling order which required the completion of expert discovery by July 13, 2018 and scheduled a conference on August 17, 2018 that will function as a pre-trial conference or a pre-motion conference. The Company and Enzo Life Sciences intend to vigorously press their remaining claims and contest the claims against them.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">There are seven pending cases originally brought by the Company in the United States District Court for the District of Delaware (&#x201c;the Court&#x201d;) alleging patent infringement against various companies.&#xa0; On June 28, 2017, the Court issued an opinion in the Gen-Probe case, granting Gen-Probe&#x2019;s motion for summary judgment that the asserted claims of the &#x2019;180 patent are invalid for nonenablement. The Court entered final judgment of invalidity of the asserted claims of the &#x2018;180 patent on July 19, 2017 in the Gen-Probe and Hologic cases.&#xa0; The Court entered partial final judgment of invalidity of the asserted claims of the &#x2018;180 patent and stayed the remainder of the cases in the Becton Dickinson and Roche cases on July 31, 2017 and August 2, 2017, respectively.&#xa0; The Company filed notices of appeal in each of the Gen-Probe, Hologic, Becton Dickinson, and Roche cases, which were docketed by the United States Court of Appeals for the Federal Circuit (&#x201c;Federal Circuit&#x201d;).&#xa0; In the Abbott case, the parties agreed that the Court&#x2019;s summary judgment ruling in the Gen-Probe case invalidated all of the &#x2019;180 patent claims asserted against the Abbott Defendants.&#xa0; On August 15, 2017, the Court granted Abbott&#x2019;s motion for summary judgment that the asserted claims of the &#x2019;405 patent are invalid for nonenablement.&#xa0; On September 1, 2017, the Court entered final judgment of invalidity of the asserted claims of the &#x2018;180 and &#x2018;405 patents for nonenablement in the Abbott case.&#xa0; Enzo subsequently filed a notice of appeal in the Abbott case on September 14, 2017.&#xa0; The Federal Circuit docketed the appeal on September 15, 2017.&#xa0; The Federal Circuit consolidated the appeals from the Abbott, Becton Dickinson, Gen-Probe, Hologic, and Roche litigations (&#x201c;Consolidated Appeals&#x201d;).&#xa0; We disagree with the Court&#x2019;s invalidity decisions regarding the &#x2018;180 and &#x2018;405 patents in the pending cases as set forth in our opening brief in the Consolidated Appeals pending in the Federal Circuit filed on November 28, 2017.&#xa0; In the Consolidated Appeals, we have asked the Federal Circuit to reverse the Court&#x2019;s grants of final and summary judgment of invalidity of the asserted claims of the &#x2018;180 and &#x2018;405 patents and to remand the cases against Abbott, Becton Dickinson, Gen-Probe, Hologic, and Roche to the Court.&#xa0; Briefing is now complete in the Consolidated Appeals.&#xa0; The parties await the Federal Circuit&#x2019;s scheduling of an oral argument date for the Consolidated Appeals. &#xa0;In the other two cases involving Hologic, one of the cases is stayed (Hologic II), while the other case (Hologic III) that involves the &#x2018;581 patent is proceeding under the Court&#x2019;s scheduling order with fact and expert discovery deadlines through September 2018, a summary judgment hearing date in April 2019, and a trial date in September 2019. &#xa0;In Hologic III, the Court granted Enzo&#x2019;s motion to amend its complaint to add two new defendants, Grifols Diagnostic Solutions, Inc. and Grifols, S.A, to that case.&#xa0; Grifols, S.A. has moved to dismiss for lack of personal jurisdiction; briefing on that motion is complete but the Court has not set a date for oral argument.&#xa0; The parties have completed claim construction briefing, and a claim construction hearing is scheduled for July 2, 2018.&#xa0; Regarding Hologic&#x2019;s petition requesting institution of an <i>inter partes</i> review proceeding regarding the U.S Patent No. 6,221,581 (&#x201c;the &#x2018;581 patent&#x201d;) filed with the United States Patent and Trademark Office (&#x201c;PTO&#x201d;), the Patent Trial and Appeals Board (&#x201c;the Board&#x201d;) denied institution of Hologic&#x2019;s petition on April 18, 2018.&#xa0; On May 18, 2018, Hologic filed with the Board a request for rehearing of the order denying institution of inter partes review of the &#x2018;581 patent.&#xa0; Enzo has requested permission to file a brief in response to Hologic&#x2019;s request for rehearing.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">There can be no assurance that the Company will be successful in these litigations. Even if the Company is not successful, management does not believe that there will be a significant adverse monetary impact on the Company.</p><br/><p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0pt 0">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.</p><br/> 7 2 EX-101.SCH 7 enz-20180430.xsd 001 - Statement - CONSOLIDATED BALANCE SHEETS link:presentationLink link:definitionLink link:calculationLink 002 - Statement - CONSOLIDATED BALANCE SHEETS (Parentheticals) link:presentationLink link:definitionLink link:calculationLink 003 - Statement - CONSOLIDATED STATEMENTS OF OPERATIONS link:presentationLink link:definitionLink link:calculationLink 004 - Statement - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) link:presentationLink link:definitionLink link:calculationLink 005 - Statement - CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY link:presentationLink link:definitionLink link:calculationLink 006 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS link:presentationLink link:definitionLink link:calculationLink 007 - 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Document And Entity Information - shares
9 Months Ended
Apr. 30, 2018
Jun. 01, 2018
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   47,165,942
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 Apr. 30, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q3  
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Apr. 30, 2018
Jul. 31, 2017
Current assets:    
Cash and cash equivalents $ 62,556 $ 64,167
Accounts receivable, net of allowances 14,407 15,180
Inventories 7,278 7,047
Prepaid expenses and other 2,175 2,690
Total current assets 86,416 89,084
Property, plant and equipment, net 7,953 7,901
Goodwill 7,452 7,452
Intangible assets, net 2,149 2,895
Other assets 1,481 333
Total assets 105,451 107,665
Current liabilities:    
Accounts payable – trade 8,250 10,350
Accrued liabilities 9,795 6,720
Other current liabilities 623 740
Total current liabilities 18,668 17,810
Other liabilities 404 983
Total liabilities 19,072 18,793
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: 47,161,942 at April 30, 2018 and 46,506,176 at July 31, 2017 472 465
Additional paid-in capital 330,517 328,294
Accumulated deficit (246,457) (241,900)
Accumulated other comprehensive income 1,847 2,013
Total stockholders’ equity 86,379 88,872
Total liabilities and stockholders’ equity $ 105,451 $ 107,665
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares
Apr. 30, 2018
Jul. 31, 2017
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 47,161,942 46,506,176
Common Stock, shares outstanding 47,161,942 46,506,176
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Apr. 30, 2018
Apr. 30, 2017
Revenues:        
Revenues $ 25,630 $ 27,089 $ 80,258 $ 79,633
Operating costs and expenses:        
Research and development 799 766 2,358 2,071
Selling, general and administrative 11,025 10,534 32,986 33,246
Provision for uncollectible accounts receivable 396 620 1,989 1,968
Legal fee expense 1,651 512 3,782 1,254
Total operating costs and expenses 28,428 27,348 86,710 82,232
Operating loss (2,798) (259) (6,452) (2,599)
Other income (expense):        
Interest 227 115 569 240
Other 17 (74) 86 69
Foreign exchange gain (loss) (462) 147 143 (308)
Loss before income taxes (3,016) (71) (5,654) (2,598)
Benefit for income taxes   0 1,097 0
Net loss $ (3,016) $ (71) $ (4,557) $ (2,598)
Net loss per common share:        
Basic and diluted (in Dollars per share) $ (0.06) $ 0.00 $ (0.10) $ (0.06)
Weighted average common shares outstanding:        
Basic and diluted (in Shares) 47,073 46,367 46,895 46,310
Clinical Laboratory Services [Member]        
Revenues:        
Revenues $ 18,137 $ 19,584 $ 58,001 $ 56,979
Operating costs and expenses:        
Cost of Revenues 10,995 11,334 34,767 33,282
Product [Member]        
Revenues:        
Revenues 7,415 7,312 21,618 21,721
Operating costs and expenses:        
Cost of Revenues 3,562 3,582 10,828 10,411
Royalty and License Fees [Member]        
Revenues:        
Revenues $ 78 $ 193 $ 639 $ 933
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Apr. 30, 2018
Apr. 30, 2017
Net loss $ (3,016) $ (71) $ (4,557) $ (2,598)
Other comprehensive income (loss):        
Foreign currency translation adjustments 329 (116) (166) 122
Comprehensive loss $ (2,687) $ (187) $ (4,723) $ (2,476)
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Apr. 30, 2018 - USD ($)
$ in Thousands
Common Stock [Member]
Treasury Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Total
Balance at Jul. 31, 2017 $ 465   $ 328,294 $ (241,900) $ 2,013 $ 88,872
Balance, Shares (in Shares) at Jul. 31, 2017 46,506,176          
Net loss for the period ended April 30, 2018       (4,557)   (4,557)
Cashless options exercise $ 4 $ (1,014) 1,010      
Cashless options exercise, Shares (in Shares) 340,898 106,911        
Vesting of restricted stock, Shares (in Shares) 2,562          
Exercise of stock options $ 3   828     $ 831
Exercise of stock options, Shares (in Shares) 274,726         615,624
Share-based compensation charges     617     $ 617
Issuance of common stock and treasury stock for employee 401(k) plan match   $ 1,014 (232)     782
Issuance of common stock and treasury stock for employee 401(k) plan match, Shares (in Shares) 37,580 (106,911)        
Foreign currency translation adjustments         (166) (166)
Balance at Apr. 30, 2018 $ 472   $ 330,517 $ (246,457) $ 1,847 $ 86,379
Balance, Shares (in Shares) at Apr. 30, 2018 47,161,942          
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Cash flows from operating activities:    
Net loss $ (4,557) $ (2,598)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization of property, plant and equipment 1,608 1,552
Amortization of intangible assets 742 1,140
Provision for uncollectible accounts receivable 1,989 1,968
Share-based compensation charges 617 601
Accrual for share-based 401(k) employer match expense 630 552
Foreign exchange (gain) loss (149) 267
Changes in operating assets and liabilities:    
Accounts receivable (1,233) (3,192)
Inventories (257) (213)
Prepaid expenses and other 513 195
Accounts payable – trade (2,126) (459)
Accrued liabilities, other current liabilities and other liabilities 2,846 (1,707)
Other assets (1,098)  
Total adjustments 4,082 704
Net cash used in operating activities (475) (1,894)
Cash flows from investing activities:    
Capital expenditures (1,626) (1,424)
Security deposits and other (51) 6
Net cash used in investing activities (1,677) (1,418)
Cash flows from financing activities:    
Proceeds from borrowings under Credit Agreement   40,694
Repayments under Credit Agreement   (42,250)
Installment loan and capital lease obligation payments (299) (428)
Proceeds from exercise of stock options 831 159
Net cash provided by (used in) financing activities 532 (1,825)
Effect of exchange rate changes on cash and cash equivalents 9 (13)
Decrease in cash and cash equivalents (1,611) (5,150)
Cash and cash equivalents - beginning of period 64,167 67,777
Cash and cash equivalents - end of period $ 62,556 $ 62,627
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Basis of Presentation
9 Months Ended
Apr. 30, 2018
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 or with one or more of its subsidiaries referred to as the “Company” or “Companies”. The consolidated balance sheet as of April 30, 2018, the consolidated statements of operations and comprehensive income (loss) for the three and nine month ended April 30, 2018 and 2017, the consolidated statements of cash flows for the nine months ended April 30, 2018 and 2017 and the consolidated statement of stockholders’ equity for the nine months ended April 30, 2018 (the “interim statements”) 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 interim statements should be read in conjunction with the consolidated financial statements for the year ended July 31, 2017 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, 2017 has been derived from the audited financial statements at that date. The results of operations for the three and nine months ended April 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2018.


Effect of New Accounting Pronouncements


Recently Adopted Accounting Pronouncements


In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires all excess tax benefits or deficiencies to be recognized as income tax expense or benefit in the income statement. In addition, excess tax benefits should be classified along with other income tax cash flows as an operating activity in the statement of cash flows. We adopted this standard as of August 1, 2017. The adoption of this new standard did not have a material impact on our consolidated financial statements.


Pronouncements Issued but Not Yet Adopted


In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606. ASU 2014-09 and its amendments supersede the current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue recognition standard is to require an entity to recognize as revenue the amount that reflects the consideration which it expects to be entitled to in exchange for the goods or services it transfers control of to its customers.


The standard will be effective for our fiscal year beginning August 1, 2018 and its interim periods. We are not early adopting. We expect to use the full retrospective method upon adoption by applying the standard to each prior reporting period presented. We continue to evaluate the expected impact of the standard. Based on our preliminary assessment of the standard, we expect that the majority of the amounts that have historically been classified as bad debt expense, primarily related to patient responsibility, will be considered an implicit price concession in determining net revenues. Accordingly, we expect to report the estimate of uncollectible balances associated with patient responsibility as a reduction of the transaction price and therefore as a reduction in net revenues when historically these amounts were classified as bad debt expense within operating costs and expenses.


The adoption of this standard will also result in increased disclosure, including qualitative and quantitative disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts from customers. However, the adoption of this standard is not expected to have a material impact on our financial position or cash flows.


In February 2016, FASB issued ASU No. 2016-02 – Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for our fiscal year beginning August 1, 2019 including interim periods within that fiscal year. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available.


We believe the adoption of this standard would materially impact our consolidated financial statements by significantly increasing our non-current assets and non-current liabilities on our consolidated balance sheets if we record the right of use assets and related lease liabilities for our existing operating leases.


We will recognize expense in the consolidated statement of operations similar to current lease accounting, in the cost of sales and selling, general and administrative.


In June 2016, FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses (Topic 326). This standard changes the impairment model for most financial instruments, including trade receivables, from an incurred loss method to a new forward-looking approach, based on expected losses. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. Adoption of this standard is required for our annual and interim periods beginning August 1, 2020 and must be adopted using a modified retrospective transition approach. We are currently assessing the impact of the adoption of this standard on our results of operations, financial position and cash flows.


In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 708) Scope of Modification Accounting which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Adoption of this standard is required for our annual and interim periods beginning August 1, 2018 with the amendments in the update applied prospectively to an award modified on or after the adoption date.


In May 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, regarding the accounting implications of the recently issued Tax Cuts and Jobs Act (the “Act”). This standard is effective immediately. The update clarifies that in a company’s financial statements that include the reporting period in which the Act was enacted, the company must first reflect the income tax effects of the Act in which the accounting under GAAP is complete. These amounts would not be provisional amounts. The company would also report provisional amounts for those specific income tax effects for which the accounting under GAAP is incomplete but a reasonable estimate can be determined. We have recorded a provisional amount which we believe is a reasonable estimate of the effects of the Act on our financial statements as of April 30, 2018. Technical corrections or other forthcoming guidance could change how we interpret provisions of the Act, which may impact our effective tax rate and could affect our deferred tax assets, tax positions and/or our tax liabilities.


We reviewed all other recently issued accounting pronouncements and have concluded they are not applicable or not expected to be significant to the accounting for our operations.


Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on the reported results of operations.


Concentration Risk


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 40% and 38% of the Clinical Labs segment net revenue for the three months ended April 30, 2018 and 2017 respectively, and 39% and 38% for the nine months ended April 30, 2018 and 2017, respectively.


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Net income (loss) per share
9 Months Ended
Apr. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

Note 2 – Net income (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. As a result of the net loss for the three and nine months ended April 30, 2018 and 2017 diluted weighted average shares outstanding are the same as basic weighted average shares outstanding, and do not include the potential common shares from stock options and unvested restricted stock because to do so would be antidilutive.


For the three and nine months ended April 30, 2018, the number of potential common shares (“in the money options”) and unvested restricted stock excluded from the calculation of diluted earnings per share was 431,000 and 694,000, respectively, because their effect would be antidilutive. For the three and nine months ended April 30, 2017, approximately 987,000 and 865,000 weighted average stock options were excluded from the calculation of diluted weighted average shares outstanding because their effect would be antidilutive.


For the three and nine months ended April 30, 2018, the effect of approximately 581,000 and 194,000 of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted net income per share because their effect would be anti-dilutive. For the three and nine months ended April 30, 2017, the effect of approximately zero and 165,000 of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted net income per share because their effect would be anti-dilutive.


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Supplemental disclosure for statement of cash flows
9 Months Ended
Apr. 30, 2018
Supplemental Cash Flow Elements [Abstract]  
Cash Flow, Supplemental Disclosures [Text Block]

Note 3 - Supplemental disclosure for statement of cash flows


For the nine months ended April 30, 2018 and 2017, income taxes paid by the Company were $65 and $1,021, respectively. 


For the nine months ended April 30, 2018 and 2017, interest paid by the Company was $61 and $99, respectively.


For the nine months ended April 30, 2018 and 2017, the Company financed $0 and $69 respectively, in machinery and transportation equipment under installment loans. 


During the nine months ended April 30, 2018 certain officers of the Company exercised 340,898 stock options in non-cash transactions. The officers surrendered 106,911 shares of the Company’s common stock to exercise the stock options. The Company recorded approximately $1,014, the market value of the surrendered shares, as treasury stock.


During the nine months ended April 30, 2018, the Company contributed its treasury stock and issued common stock in connection with its share-based 401(k) employer match in the amount of $782. For the 2017 period, the Company issue shares of common stock in the amount of $724.


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Inventories
9 Months Ended
Apr. 30, 2018
Inventory Disclosure [Abstract]  
Inventory Disclosure [Text Block]

Note 4 – Inventories


Inventories consist of the following:


   April 30,
2018
   July 31,
2017
 
Raw materials  $817   $852 
Work in process   2,065    1,905 
Finished products   4,396    4,290 
   $7,278   $7,047 

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Goodwill and intangible assets
9 Months Ended
Apr. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

Note 5 – Goodwill and intangible assets


At April 30, 2018 and July 31, 2017, the Company’s carrying amount of goodwill, related to the Clinical Labs segment, is $7,452.


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


   Gross   Accumulated
Amortization
   Net 
July 31, 2017  $27,436   $(24,541)  $2,895 
Amortization expense       (742)   (742)
Foreign currency translation   2    (6)   (4)
April 30, 2018  $27,438   $(25,289)  $2,149 

Intangible assets, all finite lived, consist of the following:


   April 30, 2018   July 31, 2017 
   Gross   Accumulated
Amortization
   Net   Gross   Accumulated
Amortization
   Net 
Patents  $11,027   $(10,971)  $56   $11,027   $(10,951)  $76 
Customer relationships   11,892    (9,799)   2,093    11,881    (9,083)   2,798 
Website and acquired content   1,010    (1,010)       1,011    (1,011)    
Licensed technology and other   492    (492)       484    (463)   21 
Trademarks   3,017    (3,017)       3,033    (3,033)    
Total  $27,438   $(25,289)  $2,149   $27,436   $(24,541)  $2,895 

At April 30, 2018, information with respect to intangibles assets acquired is as follows:


   Useful life
assigned
  Weighted average
remaining useful life
 
Customer relationships   8 -15 years  2.5 years  
Other intangibles   10 years  1.5 years  

At April 30, 2018, the weighted average remaining useful life of intangible assets is approximately two years.


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Accrued Liabilities
9 Months Ended
Apr. 30, 2018
Payables and Accruals [Abstract]  
Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Note 6 – Accrued Liabilities


Accrued liabilities consist of the following:


   April 30,
2018
   July 31,
2017
 
Payroll, benefits, and commissions  $4,343   $4,092 
Legal fee expense   2,401    599 
Professional fees   764    442 
Research and development       143 
Other   2,287    1,444 
   $9,795   $6,720 

At April 30, 2018, other accrued liabilities primarily include $400 for a legal settlement.


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Other Liabilities
9 Months Ended
Apr. 30, 2018
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]  
Other Liabilities Disclosure [Text Block]

Note 7 – Other Liabilities


Other liabilities consist of the following:


   April 30,
2018
   July 31,
2017
 
Capital lease obligations, net of short term  $397   $551 
Accrued legal settlement       410 
Installment loans, net of short term   7    22 
   $404   $983 

As of April 30, 2018, future minimum payments under the capital leases, net of interest of $75 aggregates $570 including a short term debt portion of $173 included in other current liabilities. Future minimum payments under the installment loans aggregate $44, including a short term portion of $37 included in other current liabilities.


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Stockholders' Equity
9 Months Ended
Apr. 30, 2018
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]

Note 8 – Stockholders’ Equity


Controlled Equity Offering


The Company has a Controlled Equity OfferingSM 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”). The Company pays Cantor a commission of 3.0% of the aggregate gross proceeds received under the Sale 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 initial agreement contemplated the sale of shares of the Company’s common stock having an aggregate offering price of up to $20.0 million. In December 2014, the Sales Agreement was amended in order for the Company to offer and sell additional shares of Common Stock having an aggregate offering price of $20.0 million.


On September 1, 2017, the Company filed with the SEC a “shelf” registration and sales agreement prospectus covering the offering, issuance and sale of our Common Stock that may be issued and sold under the existing Sales Agreement in an aggregate amount of up to $19.15 million. A total of $150 million of securities may be sold under this shelf registration, which was declared effective September 15, 2017.


During the nine months ended April 30, 2018 and during fiscal 2017, the Company did not sell any shares of Common Stock under the Sales Agreement.


Treasury stock


During the nine months ended April 30, 2018, certain officers of the Company exercised 340,898 stock options in non-cash transactions. The officers surrendered 106,911 shares of the Company’s common stock to exercise the stock options. The Company recorded approximately $1,014, the market value of the surrendered shares, as treasury stock. All of the treasury shares were used in the share-based 401(k) employer match made during the nine months ended April 30, 2018.


Share-based compensation


The Company has an incentive stock option and restricted stock award plan (the “2005 Plan”), and a long term incentive share award plan, (the “2011 Plan”). The 2011 Incentive Plan, which is the only plan from which awards may 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.


At the 2017 annual meeting, shareholders approved the amendment and restatement of the 2011 Plan, including an increase in the number of shares of common stock authorized for grant under the 2011 Plan, from 3 million shares to 5 million shares.


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


   Three months ended
April 30,
   Nine months ended
April 30,
 
   2018   2017   2018   2017 
Stock options   $202   $204   $609   $586 
Restricted stock    2    5    8    15 
   $204   $209   $617   $601 

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
April 30,
   Nine months ended
April 30,
 
   2018   2017   2018   2017 
Cost of clinical laboratory services   $   $2   $   $5 
Selling, general and administrative    204    207    617    596 
   $204   $209   $617   $601 

No excess tax benefits were recognized during the nine month periods ended April 30, 2018 and 2017.


Stock Option Plans


The following table summarizes stock option activity during the nine month period ended April 30, 2018:


   Options   Weighted
Average
Exercise
Price
   Weighted
Average
Remaining
Contractual
Term
  Aggregate
Intrinsic
Value (000s)
 
Outstanding at July 31, 2017    2,130,995   $4.26         
Awarded    117,580   $8.36         
Exercised    (615,624)  $2.99      $5,896 
Cancelled or expired    (29,334)  $5.94         
Outstanding at end of period    1,603,617   $5.02   2.6 years  $4,344 
Exercisable at end of period    1,168,489   $4.25   1.2 years  $2,261 

As of April 30, 2018, the total future compensation cost related to non-vested options, not yet recognized in the statements of operations, was $0.9 million and the weighted average period over which the remaining expense of these awards is expected to be recognized is fourteen months.


The intrinsic value of in the money stock option awards at the end of the period represents the Company’s closing stock price on the last trading day of the period in excess of the exercise price multiplied by the number of options.


Restricted Stock Awards


A summary of the activity pursuant to the Company’s unvested restricted stock awards for the nine months ended April 30, 2018 is as follows:


   Awards   Weighted
Average
Award Price
 
Outstanding at July 31, 2017   7,436   $4.45 
Awarded        
Vested   (2,562)  $(5.51)
Forfeited   (386)   (5.62)
Unvested at end of period   4,488   $2.97 

The fair value of a restricted stock award is determined based on the closing stock price on the award date. As of April 30, 2018, 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 twenty-two months.


The fair value of the awards that vested during the nine months ended April 30, 2018 and 2017 was $22 and $19, respectively.


The total number of shares available for grant as equity awards from the 2011 Incentive Plan is approximately 2,266,800 shares as of April 30, 2018.


During the nine months ended April 30, 2018, the Company contributed $782 to match its employees’ 401(k) contributions with 106,911 shares of treasury stock and by issuing 37,580 shares of its common stock, representing the fair value of the shares at the match date, and adjusted treasury stock, common stock and additional paid in capital by the same amount.


During the nine months ended April 30, 2017, the Company contributed $724 to match its employees’ 401(k) contributions by issuing 91,541 shares of its common stock, representing the fair value of the shares at the match date, and adjusted common stock and additional paid in capital by the same amount.


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Income taxes
9 Months Ended
Apr. 30, 2018
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

Note 9 – Income taxes


On December 22, 2017, legislation commonly known as the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017.


The Company calculated its best estimate of the impact of the Act in accordance with its understanding of the Act and guidance available as of the date of this filing and recorded $1.1 million as an income tax benefit in the nine months ended April 30, 2018, the period in which the legislation was enacted, related to a credit for alternative minimum taxes (AMT) paid in prior periods. A provisional amount related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was fully offset by an equivalent adjustment to the deferred tax valuation allowance. No provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was deemed necessary.


On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, the Company has determined that the $1.1 million income tax benefit, which relates to the AMT credit, is a provisional amount and a reasonable estimate at April 30, 2018.


The Company’s effective tax rate benefit for the three and nine months ended April 30, 2018 was zero and 24.1%, respectfully and was based on the refundable federal AMT credit. There was no tax provision or benefit for the 2017 periods. The Company’s effective tax rate for all periods differed from the expected net operating loss carryforward benefit at the U.S. federal statutory rate 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.


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Segment reporting
9 Months Ended
Apr. 30, 2018
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 10 – 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 Life Sciences segment develops, manufactures, and markets products to research and pharmaceutical customers. The 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. When recognized, legal settlements, net represents 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 patents or 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, 2017.


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


Three months ended April 30, 2018

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $18,137               $18,137 
Product revenues      $7,415            7,415 
Royalty and license fee income       78            78 
    18,137    7,493            25,630 
Operating costs and expenses:                         
Cost of clinical laboratory services   10,995                10,995 
Cost of product revenues       3,562            3,562 
Research and development       576   $223        799 
Selling, general and administrative   6,252    2,974       $1,799    11,025 
Provision for uncollectible accounts receivable   400    (4)           396 
Legal fee expense   25    19        1,607    1,651 
Total operating costs and expenses   17,672    7,127    223    3,406    28,428 
                          
Operating income (loss)   465    366    (223)   (3,406)   (2,798)
                          
Other income (expense):                         
Interest   (22)   12        237    227 
Other   15    2            17 
Foreign exchange loss       (462)           (462)
Income (loss) before income taxes  $458   $(82)  $(223)  $(3,169)  $(3,016)
                          
Depreciation and amortization included above  $437   $358   $   $20   $815 
                          
Share-based compensation included in above:                         
Selling, general and administrative   26   $17       $161    204 
Total  $26   $17   $   $161   $204 
                          
Capital expenditures  $465   $96   $   $   $561 

Three months ended April 30, 2017

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $19,584               $19,584 
Product revenues      $7,312            7,312 
Royalty and license fee income       193            193 
    19,584    7,505            27,089 
Operating costs and expenses:                         
Cost of clinical laboratory services   11,334                11,334 
Cost of product revenues       3,582            3,582 
Research and development       552   $214        766 
Selling, general and administrative   6,118    2,745       $1,671    10,534 
Provision for uncollectible accounts receivable   650    (30)           620 
Legal fee expense   4    42        466    512 
Total operating costs and expenses   18,106    6,891    214    2,137    27,348 
                          
Operating income (loss)   1,478    614    (214)   (2,137)   (259)
                          
Other income (expense):                         
Interest   (28)   12        131    115 
Other   7    (98)       17    (74)
Foreign exchange gain       147            147 
Income (loss) before income taxes  $1,457   $675   $(214)  $(1,989)  $(71)
                          
Depreciation and amortization included above  $390   $423   $   $37   $850 
                          
Share-based compensation included in above:                         
Cost of clinical laboratory services  $2               $2 
Selling, general and administrative   38   $23       $146    207 
Total  $40   $23   $   $146   $209 
                          
Capital expenditures  $483   $252   $   $   $735 

Nine months ended April 30, 2018

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $58,001               $58,001 
Product revenues      $21,618            21,618 
Royalty and license fee income       639            639 
    58,001    22,257            80,258 
Operating costs and expenses:                         
Cost of clinical laboratory services   34,767                34,767 
Cost of product revenues       10,828            10,828 
Research and development       1,690   $668        2,358 
Selling, general and administrative   18,454    8,487       $6,045    32,986 
Provision for uncollectible accounts receivable   2,000    (11)           1,989 
Legal fee expense   46    47        3,689    3,782 
Total operating costs and expenses   55,267    21,041    668    9,734    86,710 
                          
Operating income (loss)   2,734    1,216    (668)   (9,734)   (6,452)
                          
Other income (expense):                         
Interest   (70)   35        604    569 
Other   32    10        44    86 
Foreign exchange gain       143            143 
Income (loss) before income taxes  $2,696   $1,404   $(668)  $(9,086)  $(5,654)
                          
Depreciation and amortization included above  $1,254   $1,039   $   $57   $2,350 
                          
Share-based compensation included in above:                         
Selling, general and administrative   86   $61       $470    617 
Total  $86   $61   $   $470   $617 
                          
Capital expenditures  $1,459   $167   $   $   $1,626 

Nine months ended April 30, 2017

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $56,979               $56,979 
Product revenues      $21,721            21,721 
Royalty and license fee income       933            933 
    56,979    22,654            79,633 
Operating costs and expenses:                         
Cost of clinical laboratory services   33,282                33,282 
Cost of product revenues       10,411            10,411 
Research and development       1,695   $376        2,071 
Selling, general and administrative   17,967    8,596       $6,683    33,246 
Provision for uncollectible accounts receivable   1,910    58            1,968 
Legal fee expense   105    70        1,079    1,254 
Total operating costs and expenses   53,264    20,830    376    7,762    82,232 
                          
Operating income (loss)   3,715    1,824    (376)   (7,657)   (2,599)
                          
Other income (expense):                         
Interest   (85)   34        291    240 
Other   126    (98)       41    69 
Foreign exchange loss       (308)           (308)
Income (loss) before income taxes  $3,756   $1,452   $(376)  $(7,430)  $(2,598)
                          
Depreciation and amortization included above  $1,185   $1,432   $   $75   $2,692 
                          
Share-based compensation included in above:                         
Cost of clinical laboratory services  $5               $5 
Selling, general and administrative   74   $49       $473    596 
Total  $79   $49   $   $473   $601 
                          
Capital expenditures  $1,070   $354   $   $   $1,424 

XML 29 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
Contingencies
9 Months Ended
Apr. 30, 2018
Loss Contingency [Abstract]  
Contingencies Disclosure [Text Block]

Note 11 – Contingencies


The Company is engaged in litigation in the United States District Court for the Southern District of New York against Roche Diagnostic GmbH and its related company Roche Molecular Systems, Inc. (“Roche”), as declaratory judgment defendant. This case was commenced in May 2004. Roche seeks a declaratory judgment of non-breach of contract and patent invalidity against the Company. Roche has also asserted tort claims against the Company. The Company has asserted breach of contract and patent infringement causes of action against Roche. There has been extensive discovery in the case. In 2011, Roche moved for summary judgment of non-infringement regarding the Company’s patent claims. In 2012, the motion was granted in part and denied in part. In December 2012, Roche 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. In December 2013, the Court granted in part and denied in part Roche’s summary judgment motion. In October 2014, the Court ordered that damages discovery concerning the Company’s remaining contract and patent claims and Roche’s claims should be completed by the end of January 2015, and expert discovery should be completed following the Court’s not-yet-issued claim construction ruling concerning the Company’s patent infringement claim against Roche. Roche dropped its tort claims during damages discovery. On October 2, 2017, the Court issued its claim construction ruling. On May 11, 2018, the Court issued a revised scheduling order which required the completion of expert discovery by July 13, 2018 and scheduled a conference on August 17, 2018 that will function as a pre-trial conference or a pre-motion conference. The Company and Enzo Life Sciences intend to vigorously press their remaining claims and contest the claims against them.


There are seven pending cases originally brought by the Company in the United States District Court for the District of Delaware (“the Court”) alleging patent infringement against various companies.  On June 28, 2017, the Court issued an opinion in the Gen-Probe case, granting Gen-Probe’s motion for summary judgment that the asserted claims of the ’180 patent are invalid for nonenablement. The Court entered final judgment of invalidity of the asserted claims of the ‘180 patent on July 19, 2017 in the Gen-Probe and Hologic cases.  The Court entered partial final judgment of invalidity of the asserted claims of the ‘180 patent and stayed the remainder of the cases in the Becton Dickinson and Roche cases on July 31, 2017 and August 2, 2017, respectively.  The Company filed notices of appeal in each of the Gen-Probe, Hologic, Becton Dickinson, and Roche cases, which were docketed by the United States Court of Appeals for the Federal Circuit (“Federal Circuit”).  In the Abbott case, the parties agreed that the Court’s summary judgment ruling in the Gen-Probe case invalidated all of the ’180 patent claims asserted against the Abbott Defendants.  On August 15, 2017, the Court granted Abbott’s motion for summary judgment that the asserted claims of the ’405 patent are invalid for nonenablement.  On September 1, 2017, the Court entered final judgment of invalidity of the asserted claims of the ‘180 and ‘405 patents for nonenablement in the Abbott case.  Enzo subsequently filed a notice of appeal in the Abbott case on September 14, 2017.  The Federal Circuit docketed the appeal on September 15, 2017.  The Federal Circuit consolidated the appeals from the Abbott, Becton Dickinson, Gen-Probe, Hologic, and Roche litigations (“Consolidated Appeals”).  We disagree with the Court’s invalidity decisions regarding the ‘180 and ‘405 patents in the pending cases as set forth in our opening brief in the Consolidated Appeals pending in the Federal Circuit filed on November 28, 2017.  In the Consolidated Appeals, we have asked the Federal Circuit to reverse the Court’s grants of final and summary judgment of invalidity of the asserted claims of the ‘180 and ‘405 patents and to remand the cases against Abbott, Becton Dickinson, Gen-Probe, Hologic, and Roche to the Court.  Briefing is now complete in the Consolidated Appeals.  The parties await the Federal Circuit’s scheduling of an oral argument date for the Consolidated Appeals.  In the other two cases involving Hologic, one of the cases is stayed (Hologic II), while the other case (Hologic III) that involves the ‘581 patent is proceeding under the Court’s scheduling order with fact and expert discovery deadlines through September 2018, a summary judgment hearing date in April 2019, and a trial date in September 2019.  In Hologic III, the Court granted Enzo’s motion to amend its complaint to add two new defendants, Grifols Diagnostic Solutions, Inc. and Grifols, S.A, to that case.  Grifols, S.A. has moved to dismiss for lack of personal jurisdiction; briefing on that motion is complete but the Court has not set a date for oral argument.  The parties have completed claim construction briefing, and a claim construction hearing is scheduled for July 2, 2018.  Regarding Hologic’s petition requesting institution of an inter partes review proceeding regarding the U.S Patent No. 6,221,581 (“the ‘581 patent”) filed with the United States Patent and Trademark Office (“PTO”), the Patent Trial and Appeals Board (“the Board”) denied institution of Hologic’s petition on April 18, 2018.  On May 18, 2018, Hologic filed with the Board a request for rehearing of the order denying institution of inter partes review of the ‘581 patent.  Enzo has requested permission to file a brief in response to Hologic’s request for rehearing.


There can be no assurance that the Company will be successful in these litigations. Even if the Company is not successful, management does not believe that there will be a significant adverse monetary impact on the Company.


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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Accounting Policies, by Policy (Policies)
9 Months Ended
Apr. 30, 2018
Accounting Policies [Abstract]  
New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting Pronouncements


In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires all excess tax benefits or deficiencies to be recognized as income tax expense or benefit in the income statement. In addition, excess tax benefits should be classified along with other income tax cash flows as an operating activity in the statement of cash flows. We adopted this standard as of August 1, 2017. The adoption of this new standard did not have a material impact on our consolidated financial statements.

Pronouncements Issued but Not Yet Adopted [Policy Text Block]

Pronouncements Issued but Not Yet Adopted


In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606. ASU 2014-09 and its amendments supersede the current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue recognition standard is to require an entity to recognize as revenue the amount that reflects the consideration which it expects to be entitled to in exchange for the goods or services it transfers control of to its customers.


The standard will be effective for our fiscal year beginning August 1, 2018 and its interim periods. We are not early adopting. We expect to use the full retrospective method upon adoption by applying the standard to each prior reporting period presented. We continue to evaluate the expected impact of the standard. Based on our preliminary assessment of the standard, we expect that the majority of the amounts that have historically been classified as bad debt expense, primarily related to patient responsibility, will be considered an implicit price concession in determining net revenues. Accordingly, we expect to report the estimate of uncollectible balances associated with patient responsibility as a reduction of the transaction price and therefore as a reduction in net revenues when historically these amounts were classified as bad debt expense within operating costs and expenses.


The adoption of this standard will also result in increased disclosure, including qualitative and quantitative disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts from customers. However, the adoption of this standard is not expected to have a material impact on our financial position or cash flows.


In February 2016, FASB issued ASU No. 2016-02 – Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for our fiscal year beginning August 1, 2019 including interim periods within that fiscal year. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available.


We believe the adoption of this standard would materially impact our consolidated financial statements by significantly increasing our non-current assets and non-current liabilities on our consolidated balance sheets if we record the right of use assets and related lease liabilities for our existing operating leases.


We will recognize expense in the consolidated statement of operations similar to current lease accounting, in the cost of sales and selling, general and administrative.


In June 2016, FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses (Topic 326). This standard changes the impairment model for most financial instruments, including trade receivables, from an incurred loss method to a new forward-looking approach, based on expected losses. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. Adoption of this standard is required for our annual and interim periods beginning August 1, 2020 and must be adopted using a modified retrospective transition approach. We are currently assessing the impact of the adoption of this standard on our results of operations, financial position and cash flows.


In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 708) Scope of Modification Accounting which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Adoption of this standard is required for our annual and interim periods beginning August 1, 2018 with the amendments in the update applied prospectively to an award modified on or after the adoption date.


In May 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, regarding the accounting implications of the recently issued Tax Cuts and Jobs Act (the “Act”). This standard is effective immediately. The update clarifies that in a company’s financial statements that include the reporting period in which the Act was enacted, the company must first reflect the income tax effects of the Act in which the accounting under GAAP is complete. These amounts would not be provisional amounts. The company would also report provisional amounts for those specific income tax effects for which the accounting under GAAP is incomplete but a reasonable estimate can be determined. We have recorded a provisional amount which we believe is a reasonable estimate of the effects of the Act on our financial statements as of April 30, 2018. Technical corrections or other forthcoming guidance could change how we interpret provisions of the Act, which may impact our effective tax rate and could affect our deferred tax assets, tax positions and/or our tax liabilities.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration Risk


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 40% and 38% of the Clinical Labs segment net revenue for the three months ended April 30, 2018 and 2017 respectively, and 39% and 38% for the nine months ended April 30, 2018 and 2017, respectively.

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Inventories (Tables)
9 Months Ended
Apr. 30, 2018
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current [Table Text Block] Inventories consist of the following:

   April 30,
2018
   July 31,
2017
 
Raw materials  $817   $852 
Work in process   2,065    1,905 
Finished products   4,396    4,290 
   $7,278   $7,047 
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.8.0.1
Goodwill and intangible assets (Tables)
9 Months Ended
Apr. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] The Company’s change in the carrying amount of intangible assets, all in the Life Sciences segment is as follows:

   Gross   Accumulated
Amortization
   Net 
July 31, 2017  $27,436   $(24,541)  $2,895 
Amortization expense       (742)   (742)
Foreign currency translation   2    (6)   (4)
April 30, 2018  $27,438   $(25,289)  $2,149 
Schedule of Intangible Assets [Table Text Block] Intangible assets, all finite lived, consist of the following:

   April 30, 2018   July 31, 2017 
   Gross   Accumulated
Amortization
   Net   Gross   Accumulated
Amortization
   Net 
Patents  $11,027   $(10,971)  $56   $11,027   $(10,951)  $76 
Customer relationships   11,892    (9,799)   2,093    11,881    (9,083)   2,798 
Website and acquired content   1,010    (1,010)       1,011    (1,011)    
Licensed technology and other   492    (492)       484    (463)   21 
Trademarks   3,017    (3,017)       3,033    (3,033)    
Total  $27,438   $(25,289)  $2,149   $27,436   $(24,541)  $2,895 
Schedule of Useful Lives For Acquisitions [Table Text Block] At April 30, 2018, information with respect to intangibles assets acquired is as follows:

   Useful life
assigned
  Weighted average
remaining useful life
 
Customer relationships   8 -15 years  2.5 years  
Other intangibles   10 years  1.5 years  
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accrued Liabilities (Tables)
9 Months Ended
Apr. 30, 2018
Payables and Accruals [Abstract]  
Schedule of Accrued Liabilities [Table Text Block] Accrued liabilities consist of the following:

   April 30,
2018
   July 31,
2017
 
Payroll, benefits, and commissions  $4,343   $4,092 
Legal fee expense   2,401    599 
Professional fees   764    442 
Research and development       143 
Other   2,287    1,444 
   $9,795   $6,720 
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Other Liabilities (Tables)
9 Months Ended
Apr. 30, 2018
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]  
Schedule of Other Liabilities [Table Text Block] Other liabilities consist of the following:

   April 30,
2018
   July 31,
2017
 
Capital lease obligations, net of short term  $397   $551 
Accrued legal settlement       410 
Installment loans, net of short term   7    22 
   $404   $983 
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stockholders' Equity (Tables)
9 Months Ended
Apr. 30, 2018
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
April 30,
   Nine months ended
April 30,
 
   2018   2017   2018   2017 
Stock options   $202   $204   $609   $586 
Restricted stock    2    5    8    15 
   $204   $209   $617   $601 
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
April 30,
   Nine months ended
April 30,
 
   2018   2017   2018   2017 
Cost of clinical laboratory services   $   $2   $   $5 
Selling, general and administrative    204    207    617    596 
   $204   $209   $617   $601 
Share-based Compensation, Stock Options, Activity [Table Text Block] The following table summarizes stock option activity during the nine month period ended April 30, 2018:

   Options   Weighted
Average
Exercise
Price
   Weighted
Average
Remaining
Contractual
Term
  Aggregate
Intrinsic
Value (000s)
 
Outstanding at July 31, 2017    2,130,995   $4.26         
Awarded    117,580   $8.36         
Exercised    (615,624)  $2.99      $5,896 
Cancelled or expired    (29,334)  $5.94         
Outstanding at end of period    1,603,617   $5.02   2.6 years  $4,344 
Exercisable at end of period    1,168,489   $4.25   1.2 years  $2,261 
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 nine months ended April 30, 2018 is as follows:

   Awards   Weighted
Average
Award Price
 
Outstanding at July 31, 2017   7,436   $4.45 
Awarded        
Vested   (2,562)  $(5.51)
Forfeited   (386)   (5.62)
Unvested at end of period   4,488   $2.97 
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Segment reporting (Tables)
9 Months Ended
Apr. 30, 2018
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 April 30, 2018

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $18,137               $18,137 
Product revenues      $7,415            7,415 
Royalty and license fee income       78            78 
    18,137    7,493            25,630 
Operating costs and expenses:                         
Cost of clinical laboratory services   10,995                10,995 
Cost of product revenues       3,562            3,562 
Research and development       576   $223        799 
Selling, general and administrative   6,252    2,974       $1,799    11,025 
Provision for uncollectible accounts receivable   400    (4)           396 
Legal fee expense   25    19        1,607    1,651 
Total operating costs and expenses   17,672    7,127    223    3,406    28,428 
                          
Operating income (loss)   465    366    (223)   (3,406)   (2,798)
                          
Other income (expense):                         
Interest   (22)   12        237    227 
Other   15    2            17 
Foreign exchange loss       (462)           (462)
Income (loss) before income taxes  $458   $(82)  $(223)  $(3,169)  $(3,016)
                          
Depreciation and amortization included above  $437   $358   $   $20   $815 
                          
Share-based compensation included in above:                         
Selling, general and administrative   26   $17       $161    204 
Total  $26   $17   $   $161   $204 
                          
Capital expenditures  $465   $96   $   $   $561 

Three months ended April 30, 2017

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $19,584               $19,584 
Product revenues      $7,312            7,312 
Royalty and license fee income       193            193 
    19,584    7,505            27,089 
Operating costs and expenses:                         
Cost of clinical laboratory services   11,334                11,334 
Cost of product revenues       3,582            3,582 
Research and development       552   $214        766 
Selling, general and administrative   6,118    2,745       $1,671    10,534 
Provision for uncollectible accounts receivable   650    (30)           620 
Legal fee expense   4    42        466    512 
Total operating costs and expenses   18,106    6,891    214    2,137    27,348 
                          
Operating income (loss)   1,478    614    (214)   (2,137)   (259)
                          
Other income (expense):                         
Interest   (28)   12        131    115 
Other   7    (98)       17    (74)
Foreign exchange gain       147            147 
Income (loss) before income taxes  $1,457   $675   $(214)  $(1,989)  $(71)
                          
Depreciation and amortization included above  $390   $423   $   $37   $850 
                          
Share-based compensation included in above:                         
Cost of clinical laboratory services  $2               $2 
Selling, general and administrative   38   $23       $146    207 
Total  $40   $23   $   $146   $209 
                          
Capital expenditures  $483   $252   $   $   $735 

Nine months ended April 30, 2018

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $58,001               $58,001 
Product revenues      $21,618            21,618 
Royalty and license fee income       639            639 
    58,001    22,257            80,258 
Operating costs and expenses:                         
Cost of clinical laboratory services   34,767                34,767 
Cost of product revenues       10,828            10,828 
Research and development       1,690   $668        2,358 
Selling, general and administrative   18,454    8,487       $6,045    32,986 
Provision for uncollectible accounts receivable   2,000    (11)           1,989 
Legal fee expense   46    47        3,689    3,782 
Total operating costs and expenses   55,267    21,041    668    9,734    86,710 
                          
Operating income (loss)   2,734    1,216    (668)   (9,734)   (6,452)
                          
Other income (expense):                         
Interest   (70)   35        604    569 
Other   32    10        44    86 
Foreign exchange gain       143            143 
Income (loss) before income taxes  $2,696   $1,404   $(668)  $(9,086)  $(5,654)
                          
Depreciation and amortization included above  $1,254   $1,039   $   $57   $2,350 
                          
Share-based compensation included in above:                         
Selling, general and administrative   86   $61       $470    617 
Total  $86   $61   $   $470   $617 
                          
Capital expenditures  $1,459   $167   $   $   $1,626 

Nine months ended April 30, 2017

   Clinical
Labs
   Life
Sciences
   Therapeutics   Other   Consolidated 
Revenues:                         
Clinical laboratory services  $56,979               $56,979 
Product revenues      $21,721            21,721 
Royalty and license fee income       933            933 
    56,979    22,654            79,633 
Operating costs and expenses:                         
Cost of clinical laboratory services   33,282                33,282 
Cost of product revenues       10,411            10,411 
Research and development       1,695   $376        2,071 
Selling, general and administrative   17,967    8,596       $6,683    33,246 
Provision for uncollectible accounts receivable   1,910    58            1,968 
Legal fee expense   105    70        1,079    1,254 
Total operating costs and expenses   53,264    20,830    376    7,762    82,232 
                          
Operating income (loss)   3,715    1,824    (376)   (7,657)   (2,599)
                          
Other income (expense):                         
Interest   (85)   34        291    240 
Other   126    (98)       41    69 
Foreign exchange loss       (308)           (308)
Income (loss) before income taxes  $3,756   $1,452   $(376)  $(7,430)  $(2,598)
                          
Depreciation and amortization included above  $1,185   $1,432   $   $75   $2,692 
                          
Share-based compensation included in above:                         
Cost of clinical laboratory services  $5               $5 
Selling, general and administrative   74   $49       $473    596 
Total  $79   $49   $   $473   $601 
                          
Capital expenditures  $1,070   $354   $   $   $1,424 
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.8.0.1
Basis of Presentation (Details)
3 Months Ended 9 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Apr. 30, 2018
Apr. 30, 2017
Sales Revenue, Net [Member] | Clinical Labs [Member]        
Basis of Presentation (Details) [Line Items]        
Concentration Risk, Percentage 40.00% 38.00% 39.00% 38.00%
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
Net income (loss) per share (Details) - shares
3 Months Ended 9 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Apr. 30, 2018
Apr. 30, 2017
Unvested Restricted Stock [Member] | In the Money Stock Options [Member]        
Net income (loss) per share (Details) [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 431,000   694,000  
Weighted Average Stock Options [Member]        
Net income (loss) per share (Details) [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount   987,000   865,000
Outstanding Options [Member] | Out of the Money Stock Options [Member]        
Net income (loss) per share (Details) [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 581,000 0 194,000 165,000
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.8.0.1
Supplemental disclosure for statement of cash flows (Details) - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Jul. 31, 2017
Supplemental disclosure for statement of cash flows (Details) [Line Items]      
Income Taxes Paid $ 65 $ 1,021  
Interest Paid 61 99  
Installment Loans Financed Amount $ 0 69  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) 615,624    
Stock Issued During Period, Value, Employee Benefit Plan $ 782 $ 724 $ 724
Officer [Member]      
Supplemental disclosure for statement of cash flows (Details) [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) 340,898    
Treasury Stock, Shares, Acquired (in Shares) 106,911    
Treasury Stock, Value, Acquired, Cost Method $ 1,014    
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.8.0.1
Inventories (Details) - Schedule of inventory, current - USD ($)
$ in Thousands
Apr. 30, 2018
Jul. 31, 2017
Schedule of inventory, current [Abstract]    
Raw materials $ 817 $ 852
Work in process 2,065 1,905
Finished products 4,396 4,290
$ 7,278 $ 7,047
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.8.0.1
Goodwill and intangible assets (Details) - USD ($)
$ in Thousands
9 Months Ended
Apr. 30, 2018
Jul. 31, 2017
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 2 years  
Clinical Labs [Member]    
Goodwill and intangible assets (Details) [Line Items]    
Goodwill $ 7,452 $ 7,452
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.8.0.1
Goodwill and intangible assets (Details) - Schedule of indefinite-lived intangible assets - USD ($)
$ in Thousands
9 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Indefinite-lived Intangible Assets [Line Items]    
July 31, 2017 $ 27,436  
July 31, 2017 24,541  
July 31, 2017 2,895  
Amortization expense 742 $ 1,140
Amortization expense 742 $ 1,140
April 30, 2018 27,438  
April 30, 2018 25,289  
April 30, 2018 2,149  
Life Sciences [Member]    
Indefinite-lived Intangible Assets [Line Items]    
July 31, 2017 27,436  
July 31, 2017 (24,541)  
July 31, 2017 2,895  
Amortization expense (742)  
Amortization expense (742)  
Foreign currency translation 2  
Foreign currency translation (6)  
Foreign currency translation (4)  
April 30, 2018 27,438  
April 30, 2018 (25,289)  
April 30, 2018 $ 2,149  
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.8.0.1
Goodwill and intangible assets (Details) - Schedule of intangible assets - USD ($)
$ in Thousands
Apr. 30, 2018
Jul. 31, 2017
Goodwill and intangible assets (Details) - Schedule of intangible assets [Line Items]    
Finite-lived intangible assets, Gross $ 27,438 $ 27,436
Finite-lived intangible assets, Accumulated Amortization (25,289) (24,541)
Finite-lived intangible assets, Net 2,149 2,895
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 (10,971) (10,951)
Finite-lived intangible assets, Net 56 76
Customer Relationships [Member]    
Goodwill and intangible assets (Details) - Schedule of intangible assets [Line Items]    
Finite-lived intangible assets, Gross 11,892 11,881
Finite-lived intangible assets, Accumulated Amortization (9,799) (9,083)
Finite-lived intangible assets, Net 2,093 2,798
Website And Acquired Content [Member]    
Goodwill and intangible assets (Details) - Schedule of intangible assets [Line Items]    
Finite-lived intangible assets, Gross 1,010 1,011
Finite-lived intangible assets, Accumulated Amortization (1,010) (1,011)
Licensed Technology And Other [Member]    
Goodwill and intangible assets (Details) - Schedule of intangible assets [Line Items]    
Finite-lived intangible assets, Gross 492 484
Finite-lived intangible assets, Accumulated Amortization (492) (463)
Finite-lived intangible assets, Net   21
Trademarks [Member]    
Goodwill and intangible assets (Details) - Schedule of intangible assets [Line Items]    
Finite-lived intangible assets, Gross 3,017 3,033
Finite-lived intangible assets, Accumulated Amortization $ (3,017) $ (3,033)
XML 44 R33.htm IDEA: XBRL DOCUMENT v3.8.0.1
Goodwill and intangible assets (Details) - Schedule of useful lives for acquisitions
9 Months Ended
Apr. 30, 2018
Customer Relationships [Member]  
Goodwill and intangible assets (Details) - Schedule of useful lives for acquisitions [Line Items]  
Weighted average remaining useful life 2 years 6 months
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
Other Intangible Assets [Member]  
Goodwill and intangible assets (Details) - Schedule of useful lives for acquisitions [Line Items]  
Useful life assigned 10 years
Weighted average remaining useful life 1 year 6 months
XML 45 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accrued Liabilities (Details)
$ in Thousands
Apr. 30, 2018
USD ($)
Payables and Accruals [Abstract]  
Accrued Legal Settlement Current $ 400
XML 46 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accrued Liabilities (Details) - Accrued liabilities - USD ($)
$ in Thousands
Apr. 30, 2018
Jul. 31, 2017
Accrued liabilities [Abstract]    
Payroll, benefits, and commissions $ 4,343 $ 4,092
Legal fee expense 2,401 599
Professional fees 764 442
Research and development   143
Other 2,287 1,444
$ 9,795 $ 6,720
XML 47 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Other Liabilities (Details)
$ in Thousands
Apr. 30, 2018
USD ($)
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]  
Capital Leases, Future Minimum Payments, Interest Included in Payments $ 75
Capital Lease Obligations 570
Capital Lease Obligations, Current 173
Long-term Debt 44
Long-term Debt, Current Maturities $ 37
XML 48 R37.htm IDEA: XBRL DOCUMENT v3.8.0.1
Other Liabilities (Details) - Schedule of other liabilities - USD ($)
$ in Thousands
Apr. 30, 2018
Jul. 31, 2017
Other Liabilities (Details) - Schedule of other liabilities [Line Items]    
Other liabilities $ 404 $ 983
Capital Lease Obligations [Member]    
Other Liabilities (Details) - Schedule of other liabilities [Line Items]    
Other liabilities 397 551
Accrued Legal Settlement [Member]    
Other Liabilities (Details) - Schedule of other liabilities [Line Items]    
Other liabilities   410
Installment Loans [Member]    
Other Liabilities (Details) - Schedule of other liabilities [Line Items]    
Other liabilities $ 7 $ 22
XML 49 R38.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stockholders' Equity (Details) - USD ($)
9 Months Ended 12 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Jul. 31, 2017
Dec. 31, 2014
Stockholders' Equity (Details) [Line Items]        
Common Stock, Par or Stated Value Per Share (in Dollars per share) $ 0.01   $ 0.01  
Percentage of Commission Payable on Equity Offering 3.00%      
Maximum Offering Price Under Sales Agreement $ 20,000,000     $ 20,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) 615,624      
Excess Tax Benefit from Share-based Compensation, Financing Activities $ 0 $ 0    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options $ 900,000      
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition 14 months      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value $ 22,000 19,000    
Stock Issued During Period, Value, Employee Benefit Plan 782,000 $ 724,000 $ 724,000  
Restricted Stock [Member]        
Stockholders' Equity (Details) [Line Items]        
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options $ 100,000      
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Outstanding Weighted Average Remaining Contractual Terms 22 months      
2011 Plan [Member]        
Stockholders' Equity (Details) [Line Items]        
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) 5,000,000   3,000,000  
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) 2,266,800      
Common Stock [Member]        
Stockholders' Equity (Details) [Line Items]        
Authorized Common Stock That May Be Issued And Sold Under Sales Agreement $ 19,150,000      
Securities That May Be Sold Under The Agreement $ 150,000,000      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) 274,726      
Treasury Stock, Shares, Acquired (in Shares) 340,898      
Treasury Stock, Value, Acquired, Cost Method $ 4,000      
Stock Issued During Period, Shares, Employee Benefit Plan (in Shares) 37,580 91,541    
Treasury Stock [Member]        
Stockholders' Equity (Details) [Line Items]        
Treasury Stock, Shares, Acquired (in Shares) 106,911      
Treasury Stock, Value, Acquired, Cost Method $ (1,014,000)      
Stock Issued During Period, Value, Employee Benefit Plan $ 1,014,000      
Stock Issued During Period, Shares, Employee Benefit Plan (in Shares) (106,911)      
Officer [Member]        
Stockholders' Equity (Details) [Line Items]        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares) 340,898      
Treasury Stock, Shares, Acquired (in Shares) 106,911      
Treasury Stock, Value, Acquired, Cost Method $ 1,014,000      
XML 50 R39.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stockholders' Equity (Details) - Schedule of share-based compensation expense - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Apr. 30, 2018
Apr. 30, 2017
Stockholders' Equity (Details) - Schedule of share-based compensation expense [Line Items]        
Stock Based Compensation Expense $ 204 $ 209 $ 617 $ 601
Options [Member]        
Stockholders' Equity (Details) - Schedule of share-based compensation expense [Line Items]        
Stock Based Compensation Expense 202 204 609 586
Restricted Stocks [Member]        
Stockholders' Equity (Details) - Schedule of share-based compensation expense [Line Items]        
Stock Based Compensation Expense $ 2 $ 5 $ 8 $ 15
XML 51 R40.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stockholders' Equity (Details) - Schedule of share-based compensation expense by line item - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Apr. 30, 2018
Apr. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based Payment Arrangement $ 204 $ 209 $ 617 $ 601
Cost of Clinical Laboratory Services [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based Payment Arrangement   2   5
Selling, General and Administrative Expenses [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based Payment Arrangement $ 204 $ 207 $ 617 $ 596
XML 52 R41.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stockholders' Equity (Details) - Schedule of stock option plans
$ / shares in Units, $ in Thousands
9 Months Ended
Apr. 30, 2018
USD ($)
$ / shares
shares
Schedule of stock option plans [Abstract]  
Outstanding at July 31, 2017 | shares 2,130,995
Outstanding at July 31, 2017 | $ / shares $ 4.26
Awarded | shares 117,580
Awarded | $ / shares $ 8.36
Exercised | shares (615,624)
Exercised | $ / shares $ 2.99
Exercised | $ $ 5,896
Cancelled or expired | shares (29,334)
Cancelled or expired | $ / shares $ 5.94
Outstanding at end of period | shares 1,603,617
Outstanding at end of period | $ / shares $ 5.02
Outstanding at end of period 2 years 219 days
Outstanding at end of period | $ $ 4,344
Exercisable at end of period | shares 1,168,489
Exercisable at end of period | $ / shares $ 4.25
Exercisable at end of period 1 year 73 days
Exercisable at end of period | $ $ 2,261
XML 53 R42.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stockholders' Equity (Details) - Schedule of restricted stock awards
9 Months Ended
Apr. 30, 2018
$ / shares
shares
Schedule of restricted stock awards [Abstract]  
Outstanding at July 31, 2017 | shares 7,436
Outstanding at July 31, 2017 | $ / shares $ 4.45
Vested | shares (2,562)
Vested | $ / shares $ (5.51)
Forfeited | shares (386)
Forfeited | $ / shares $ (5.62)
Unvested at end of period | shares 4,488
Unvested at end of period | $ / shares $ 2.97
XML 54 R43.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income taxes (Details) - USD ($)
$ in Thousands
3 Months Ended 5 Months Ended 7 Months Ended 9 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Dec. 31, 2017
Jul. 31, 2018
Apr. 30, 2018
Apr. 30, 2017
Income taxes (Details) [Line Items]            
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent     35.00%      
Effective Income Tax Rate Reconciliation, Percent 0.00%       24.10%  
Income Tax Expense (Benefit) (in Dollars)   $ 0     $ (1,097) $ 0
Scenario, Plan [Member]            
Income taxes (Details) [Line Items]            
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent       21.00%    
Alternate Minimum Tax [Member]            
Income taxes (Details) [Line Items]            
Effective Income Tax Rate Reconciliation, Tax Credit, Amount (in Dollars)         $ 1,100  
XML 55 R44.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment reporting (Details)
9 Months Ended
Apr. 30, 2018
Segment Reporting [Abstract]  
Number of Reportable Segments 3
XML 56 R45.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment reporting (Details) - Schedule of segment reporting information, by segment - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Apr. 30, 2018
Apr. 30, 2017
Apr. 30, 2018
Apr. 30, 2017
Segment Reporting Information [Line Items]        
Revenues $ 25,630 $ 27,089 $ 80,258 $ 79,633
Research and development 799 766 2,358 2,071
Selling, general and administrative 11,025 10,534 32,986 33,246
Provision for uncollectible accounts receivable 396 620 1,989 1,968
Legal fee expense 1,651 512 3,782 1,254
Operating income (loss) (2,798) (259) (6,452) (2,599)
Other 17 (74) 86 69
Foreign exchange gain (loss) (462) 147 143 (308)
Share-based compensation 204 209 617 601
Selling, General and Administrative Expenses [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation 204 207 617 596
Cost of Clinical Laboratory Services [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation   2   5
Clinical Labs [Member]        
Segment Reporting Information [Line Items]        
Revenues 18,137 19,584 58,001 56,979
Selling, general and administrative 6,252 6,118 18,454 17,967
Provision for uncollectible accounts receivable 400 650 2,000 1,910
Legal fee expense 25 4 46 105
Total operating costs and expenses 17,672 18,106 55,267 53,264
Operating income (loss) 465 1,478 2,734 3,715
Interest (22) (28) (70) (85)
Other 15 7 32 126
Income (loss) before income taxes 458 1,457 2,696 3,756
Depreciation and amortization included above 437 390 1,254 1,185
Capital expenditures 465 483 1,459 1,070
Clinical Labs [Member] | Selling, General and Administrative Expenses [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation 26 38 86 74
Clinical Labs [Member] | Total [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation 26 40 86 79
Clinical Labs [Member] | Cost of Clinical Laboratory Services [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation   2   5
Life Sciences [Member]        
Segment Reporting Information [Line Items]        
Revenues 7,493 7,505 22,257 22,654
Research and development 576 552 1,690 1,695
Selling, general and administrative 2,974 2,745 8,487 8,596
Provision for uncollectible accounts receivable (4) (30) (11) 58
Legal fee expense 19 42 47 70
Total operating costs and expenses 7,127 6,891 21,041 20,830
Operating income (loss) 366 614 1,216 1,824
Interest 12 12 35 34
Other 2 (98) 10 (98)
Foreign exchange gain (loss) (462) 147 143 (308)
Income (loss) before income taxes (82) 675 1,404 1,452
Depreciation and amortization included above 358 423 1,039 1,432
Capital expenditures 96 252 167 354
Life Sciences [Member] | Selling, General and Administrative Expenses [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation 17 23 61 49
Life Sciences [Member] | Total [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation 17 23 61 49
Therapeutics [Member]        
Segment Reporting Information [Line Items]        
Research and development 223 214 668 376
Total operating costs and expenses 223 214 668 376
Operating income (loss) (223) (214) (668) (376)
Income (loss) before income taxes (223) (214) (668) (376)
Other Segments [Member]        
Segment Reporting Information [Line Items]        
Selling, general and administrative 1,799 1,671 6,045 6,683
Legal fee expense 1,607 466 3,689 1,079
Total operating costs and expenses 3,406 2,137 9,734 7,762
Operating income (loss) (3,406) (2,137) (9,734) (7,657)
Interest 237 131 604 291
Other   17 44 41
Income (loss) before income taxes (3,169) (1,989) (9,086) (7,430)
Depreciation and amortization included above 20 37 57 75
Other Segments [Member] | Selling, General and Administrative Expenses [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation 161 146 470 473
Other Segments [Member] | Total [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation 161 146 470 473
Consolidated [Member]        
Segment Reporting Information [Line Items]        
Revenues 25,630 27,089 80,258 79,633
Research and development 799 766 2,358 2,071
Selling, general and administrative 11,025 10,534 32,986 33,246
Provision for uncollectible accounts receivable 396 620 1,989 1,968
Legal fee expense 1,651 512 3,782 1,254
Total operating costs and expenses 28,428 27,348 86,710 82,232
Operating income (loss) (2,798) (259) (6,452) (2,599)
Interest 227 115 569 240
Other 17 (74) 86 69
Foreign exchange gain (loss) (462) 147 143 (308)
Income (loss) before income taxes (3,016) (71) (5,654) (2,598)
Depreciation and amortization included above 815 850 2,350 2,692
Capital expenditures 561 735 1,626 1,424
Consolidated [Member] | Selling, General and Administrative Expenses [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation 204 207 617 596
Consolidated [Member] | Total [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation 204 209 617 601
Consolidated [Member] | Cost of Clinical Laboratory Services [Member]        
Segment Reporting Information [Line Items]        
Share-based compensation   2   5
Clinical Laboratory Services [Member]        
Segment Reporting Information [Line Items]        
Revenues 18,137 19,584 58,001 56,979
Cost of Revenues 10,995 11,334 34,767 33,282
Clinical Laboratory Services [Member] | Clinical Labs [Member]        
Segment Reporting Information [Line Items]        
Revenues 18,137 19,584 58,001 56,979
Cost of Revenues 10,995 11,334 34,767 33,282
Clinical Laboratory Services [Member] | Consolidated [Member]        
Segment Reporting Information [Line Items]        
Revenues 18,137 19,584 58,001 56,979
Cost of Revenues 10,995 11,334 34,767 33,282
Product [Member]        
Segment Reporting Information [Line Items]        
Revenues 7,415 7,312 21,618 21,721
Cost of Revenues 3,562 3,582 10,828 10,411
Product [Member] | Life Sciences [Member]        
Segment Reporting Information [Line Items]        
Revenues 7,415 7,312 21,618 21,721
Cost of Revenues 3,562 3,582 10,828 10,411
Product [Member] | Consolidated [Member]        
Segment Reporting Information [Line Items]        
Revenues 7,415 7,312 21,618 21,721
Cost of Revenues 3,562 3,582 10,828 10,411
Royalty and License Fees [Member]        
Segment Reporting Information [Line Items]        
Revenues 78 193 639 933
Royalty and License Fees [Member] | Life Sciences [Member]        
Segment Reporting Information [Line Items]        
Revenues 78 193 639 933
Royalty and License Fees [Member] | Consolidated [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 78 $ 193 $ 639 $ 933
XML 57 R46.htm IDEA: XBRL DOCUMENT v3.8.0.1
Contingencies (Details)
9 Months Ended
Apr. 30, 2018
Loss Contingency [Abstract]  
Number Of Pending Cases 7
Loss Contingency Number Of New Defendants 2
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