Segment reporting

6 Months Ended

Jan. 31, 2021

Segment Reporting [Abstract]

Segment reporting

Note 11 – Segment reporting

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

Legal and related expenses incurred to defend the Company’s intellectual property, which may result in settlements recognized in another segment and other general corporate matters are considered a component of the Other segment. Legal and related expenses specific to other segments’ activities are allocated to those segments.

Legal settlements, net, represent activities for which royalties would have been received in the Company’s Products segment. Management of the Company assesses assets on a consolidated basis only and therefore, assets by reportable segment have not been included in the reportable segments below. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

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

Three months ended January 31, 2021	Clinical Services			Products		Therapeutics			Other			Consolidated
Revenues – Services and Products	$	23,988		$	7,478		-			-		$	31,466
Operating costs and expenses:
Cost of revenues		11,708			3,937		-			-			15,645
Research and development		160			633	$	13			-			806
Selling, general and administrative		6,425			2,593		16		$	1,979			11,013
Legal and related expenses		71			1		-			2,220			2,292
Total operating costs and expenses		18,364			7,164		29			4,199			29,756
Operating income (loss)		5,624			314		(29	)		(4,199	)		1,710
Other income (expense):
Interest		(4	)		8		-			(53	)		(49	)
Other		14			2		-			-			16
Foreign exchange gain		-			625		-			-			625
Net income (loss)	$	5,634		$	949	$	(29	)	$	(4,252	)	$	2,302
Depreciation and amortization included above	$	381		$	188	$	-		$	66		$	635
Share-based compensation included in above:
Selling, general and administrative		10			16		-			136			162
Cost of revenues		14			-		-			-			14
Total	$	24		$	16	$	-		$	136		$	176
Capital expenditures	$	341		$	154	$	-		$	11		$	506

Three months ended January 31, 2020	Clinical Services			Products		Therapeutics			Other			Consolidated
Revenues	$	12,513		$	6,871		-			-		$	19,384
Operating costs and expenses:
Cost of revenues		10,243			3,332		-			-			13,575
Research and development		373			503		189			-			1,065
Selling, general and administrative		5,895			2,530		-			2,268			10,693
Legal fee expense		38			1		-			2,021			2,060
Total operating costs and expenses		16,549			6,366		189			4,289			27,393
Operating income (loss)		(4,036	)		505		(189	)		(4,289	)		(8,009	)
Other income (expense):
Interest		(10	)		16		-			165			171
Other		16			7		-			49			72
Foreign exchange gain		-			79		-			-			79
Net (loss) income	$	(4,030	)		607		(189	)		(4,075	)		(7,687	)
Depreciation and amortization included above	$	392			253		-			65			710
Share-based compensation included in above:
Selling, general and administrative		33			22		-			247			302
Total	$	33			22		-			247			302
Capital expenditures	$	142			18		-			-			160

Six months ended January 31, 2021	Clinical Services			Products		Therapeutics			Other			Consolidated
Revenues – Services and Products	$	45,211		$	14,910		-			-		$	60,121
Operating costs and expenses:
Cost of revenues		24,703			7,700		-			-			32,403
Research and development		281			1,225	$	46			-			1,552
Selling, general and administrative		12,523			5,038		33		$	3,433			21,027
Legal and related expenses		96			6		-			2,830			2,932
Total operating costs and expenses		37,603			13,969		79			6,263			57,914
Operating income (loss)		7,608			941		(79	)		(6,263	)		2,207
Other income (expense):
Interest		(10	)		18		-			(108	)		(100	)
Other		29			4		-			-			33
Foreign exchange gain					461		-			-			461
Net income (loss)	$	7,627		$	1,424	$	(79	)	$	(6,371	)	$	2,601
Depreciation and amortization included above	$	790		$	373	$	-		$	132		$	1,295
Share-based compensation included in above:
Selling, general and administrative		19			32		-			265			316
Cost of revenues		27			-		-			-			27
Total	$	46		$	32	$	-		$	265		$	343
Capital expenditures	$	881		$	198	$	-		$	44		$	1,123

Six months ended January 31, 2020	Clinical Services			Products			Therapeutics			Other			Consolidated
Revenues – Services and Products	$	25,293		$	14,298			-			-		$	39,591
Operating costs and expenses:
Cost of revenues		21,218			6,878			-			-			28,096
Research and development		723			1,019		$	377			-			2,119
Selling, general and administrative		12,110			5,287			-		$	4,435			21,832
Legal and related expenses		88			1			-			3,667			3,756
Total operating costs and expenses		34,139			13,185			377			8,102			55,803
Operating income (loss)		(8,846	)		1,113			(377	)		(8,102	)		(16,212	)
Other income (expense):
Interest		(22	)		34			-			396			408
Other		19			(5	)		-			185			199
Foreign exchange gain		-			270			-			-			270
Net income (loss)	$	(8,849	)	$	1,412		$	(377	)	$	(7,521	)	$	(15,335	)
Depreciation and amortization included above	$	801		$	503		$	-		$	130		$	1,434
Share-based compensation  included in above:
Selling, general and administrative.		67			44			-			410			521
Total	$	67		$	44		$	-		$	410		$	521
Capital expenditures	$	289		$	145		$	-		$	-		$	434