11.	SEGMENT INFORMATION

We operate in two principal segments – contract research services and research products. Our Services segment provides research and development support on a contract basis directly to pharmaceutical companies. Our Products segment provides liquid chromatography, electrochemical and physiological monitoring products to pharmaceutical companies, universities, government research centers, and medical research institutions. We evaluate performance and allocate resources based on these segments. Certain of our assets are not directly attributable to the Services or Products segments. These assets are grouped into the Corporate segment and include cash and cash equivalents, deferred income taxes, refundable income taxes, debt issue costs and certain other assets. We do not allocate such items to the principal segments because they are not used to evaluate their financial position. The accounting policies of these segments are the same as those described in the summary of significant accounting policies.

(a)

Operating Segments

	Years Ended September 30,
	2017			2016
Revenue:
Services	$	20,182		$	15,924
Products		4,060			4,517
	$	24,242		$	20,441
Operating income (loss):
Services	$	1,755		$	(1,576	)
Products		(477	)		(1,464	)
	$	1,278		$	(3,040	)

Interest Expense		(375	)		(399	)
Decrease in fair value of warrant liability		—			189
Other income		5			6
Income (loss) before income taxes	$	908		$	(3,244	)

	Years Ended September 30,					Years Ended September 30,
	2017		2016			2017		2016
Identifiable assets:					Depreciation and amortization:
Services	$	12,512	$	12,413	Services	$	1,318	$	1,242
Products		4,807		5,562	Products		362		314
Corporate		3,098		3,164		$	1,680	$	1,556
	$	20,417	$	21,139

Goodwill, net:					Capital expenditures:
Services	$	38	$	38	Services	$	307	$	945
Products		—		—	Products		40		311
	$	38	$	38		$	347	$	1,256

(b)

Geographic Information

	Years Ended September 30,
	2017		2016
Sales to External Customers:
United States	$	21,645	$	18,385
Other North America		266		297
Pacific Rim		1,395		1,148
Europe		774		447
Other		162		164
	$	24,242	$	20,441

Long-lived Assets:
United States	$	15,024	$	16,201
	$	15,024	$	16,201

(c)

Major Customers

In fiscal 2017, our Services group continued its presence at several important existing customers. In fiscal 2017, one customer accounted for approximately 13.1% of total sales and 5.2% of total trade accounts receivable at September 30, 2017. In fiscal 2016, this customer accounted for approximately 14.0% of total sales and 13.2% of total trade accounts receivable at September 30, 2016. The customer discussed is included in our Services segment. There can be no assurance that our business will move away from dependence upon a limited number of customer relationships.