Segment Reporting

9 Months Ended

Apr. 30, 2023

Segment Reporting [Abstract]

Segment reporting

Note 11 – Segment reporting

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

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

At the beginning of fiscal 2023, we determined we would redirect our research resources and efforts to our two operating segments, Clinical Services and Products, and as a result, Enzo Therapeutics no longer meets the criteria for being a reportable segment. The operating expenses of Enzo Therapeutics are included in the “Other” segment for all periods presented.

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

Three months ended April 30, 2023	Clinical Services			Products			Other			Consolidated
Revenues	$	8,622		$	7,485			—		$	16,107
Operating costs and expenses:
Cost of revenues		9,993			4,476			—			14,469
Research and development		91			872			12			975
Selling, general and administrative		6,337			2,641			3,044			12,022
Legal fee expense		21			19			4,246			4,286
Total operating costs and expenses		16,442			8,008			7,302			31,752
Operating loss		(7,820	)		(523	)		(7,302	)		(15,645	)
Other income (expense):
Interest, net		(1	)		30			(66	)		(37	)
Other		4			2			142			148
Foreign exchange loss		—			347			—			347
Loss before income taxes	$	(7,817	)	$	(144	)	$	(7,226	)	$	(15,187	)
Depreciation and amortization included above	$	373			182			93			648
Share-based compensation included in above:
Selling, general and administrative		65			20			461			546
Cost of revenues		11			6			—			17
Total	$	76			26			461			563
Capital expenditures	$	53			331			282			666

Three months ended April 30, 2022	Clinical Services			Products			Other			Consolidated
Revenues	$	18,630		$	7,592			—		$	26,222
Operating costs and expenses:
Cost of revenues		11,180			4,869			—			16,049
Research and development		666			458			9			1,133
Selling, general and administrative		6,756			2,786			1,900			11,442
Legal fee expense		12			10			712			734
Total operating costs and expenses		18,614			8,123			2,621			29,358
Operating income (loss)		16			(531	)		(2,621	)		(3,136	)
Other income (expense):
Interest, net		(2	)		10			46			54
Other		15			(2	)		(729	)		(716	)
Foreign exchange loss		—			(1,056	)		—			(1,056	)
Income (loss) before income taxes	$	29		$	(1,579	)	$	(3,304	)	$	(4,854	)
Depreciation and amortization included above	$	430			224			78			732
Share-based compensation included in above:
Selling, general and administrative		38			1			119			158
Cost of revenues		4			—			—			4
Total	$	42			1			119			162
Capital expenditures	$	202			572			82			856

Nine months ended April 30, 2023	Clinical Services			Products			Other			Consolidated
Revenues	$	28,619		$	22,102			—		$	50,721
Operating costs and expenses:
Cost of revenues		30,538			13,681			—			44,219
Research and development		694			2,675			33			3,402
Selling, general and administrative		19,830			7,627			7,828			35,285
Legal fee expense		192			55			6,105			6,352
Total operating costs and expenses		51,254			24,038			13,966			89,258
Operating loss		(22,635	)		(1,936	)		(13,966	)		(38,537	)
Other income (expense):
Interest, net		(4	)		84			15			95
Other		16			6			256			278
Foreign exchange loss		—			1,022			—			1,022
Loss before income taxes	$	(22,623	)	$	(824	)	$	(13,695	)	$	(37,142	)
Depreciation and amortization included above	$	1,291			518			267			2,076
Share-based compensation included in above:
Selling, general and administrative		179			61			1,211			1,451
Cost of revenues		41			16			—			57
Total	$	220			77			1,211			1,508
Capital expenditures	$	412			1,269			506			2,187

Nine months ended April 30, 2022	Clinical Services			Products			Other			Consolidated
Revenues – Services and Products	$	62,045		$	24,742			—		$	86,787
Operating costs and expenses:
Cost of revenues		34,969			14,191			—			49,160
Research and development		762			1,901			34			2,697
Selling, general and administrative		19,568			8,920		$	8,472			36,960
Legal and related expenses		217			23			4,621			4,861
Total operating costs and expenses		55,516			25,035			13,127			93,678
Operating income (loss)		6,529			(293	)		(13,127	)		(6,891	)
Other income (expense):
Interest, net		(7	)		28			140			161
Other		69			3			(1,283	)		(1,211	)
Foreign exchange (loss)					(1,887	)		—			(1,887	)
Net income (loss)	$	6,591		$	(2,149	)	$	(14,270	)	$	(9,828	)
Depreciation and amortization included above	$	1,286		$	626		$	226		$	2,138
Share-based compensation included in above:
Selling, general and administrative		74			2			961			1,037
Cost of revenues		20			—			—			20
Total	$	94		$	2		$	961		$	1,057
Capital expenditures	$	795		$	1,788		$	520		$	3,103