SEGMENT INFORMATION

6 Months Ended

Mar. 31, 2023

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE G – SEGMENT INFORMATION

As detailed in Note B above, the Company has three reportable segments; (1) Therapeutic DNA Production Services, (2) MDx Testing Services, and (3) DNA Tagging and Security Products and Services. Resources are allocated by our CEO, COO, CFO and CLO whom, collectively the Company has determined to be our CODM.

Information regarding operations by segment for the three-month period ended March 31, 2023 is as follows:

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services		Security Products		Consolidated
Revenues:
Product revenues	$	255,626	$	—	$	41,828	$	297,454
Service revenues		83,906		—		85,152		169,058
Clinical laboratory service revenues		—		3,971,582		—		3,971,582
Less intersegment revenues		—		(30,480)		—		(30,480)
Total revenues	$	339,532	$	3,941,102	$	126,980	$	4,407,614
Gross profit	$	215,477	$	1,650,113	$	(58,155)	$	1,807,435
(Loss) income from segment operations (a)	$	(1,054,123)	$	492,288	$	(914,736)	$	(1,476,571)

NOTE G – SEGMENT INFORMATION, continued

Information regarding operations by segment for the three-month period ended March 31, 2022 is as follows:

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services		Security Products		Consolidated
Revenues:
Product revenues	$	—	$	180,023	$	228,328	$	408,351
Service revenues		158,243		—		90,447		248,690
Clinical laboratory service revenues		—		5,623,922		—		5,623,922
Less intersegment revenues		—		(133,680)		—		(133,680)
Total revenues	$	158,243	$	5,670,265	$	318,775	$	6,147,283
Gross profit	$	158,243	$	2,335,169	$	(4,927)	$	2,488,485
(Loss) income from segment operations (a)	$	(1,049,207)	$	1,084,388	$	(1,292,632)	$	(1,257,451)

Information regarding operations by segment for the six-month period ended March 31, 2023 is as follows:

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services		Security Products		Consolidated
Revenues:
Product revenues	$	383,132	$	—	$	430,718	$	813,850
Service revenues		205,649		—		195,470		401,119
Clinical laboratory service revenues		—		8,537,397		—		8,537,397
Less intersegment revenues		—		(82,000)		—		(82,000)
Total revenues	$	588,781	$	8,455,397	$	626,188	$	9,670,366
Gross profit	$	386,401	$	3,583,332	$	215,385	$	4,185,118
(Loss) income from segment operations (a)	$	(1,906,376)	$	1,602,172	$	(1,389,451)	$	(1,693,655)

Information regarding operations by segment for the six-month period ended March 31, 2022 is as follows:

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services		Security Products		Consolidated
Revenues:
Product revenues	$	—	$	522,844	$	711,818	$	1,234,662
Service revenues		247,681		—		140,282		387,963
Clinical laboratory service revenues		—		8,973,580		—		8,973,580
Less intersegment revenues		—		(283,216)		—		(283,216)
Total revenues	$	247,681	$	9,213,208	$	852,100	$	10,312,989
Gross profit	$	247,681	$	3,155,859	$	194,083	$	3,597,623
(Loss) income from segment operations (a)	$	(1,973,984)	$	749,400	$	(2,189,032)	$	(3,413,616)

NOTE G – SEGMENT INFORMATION, continued

Reconciliation of segment loss from operations to consolidated loss before provision for income taxes is as follows:

Three-Month Period Ended:	March 31,
	2023		2022
Loss from operations of reportable segments	$	(1,476,571)	$	(1,257,451)
General corporate expenses (b)		(1,227,453)		(896,785)
Interest income		3,639		5,540
Unrealized gain on change in fair value of warrants classified as a liability		3,250,900		782,500
Transaction cost allocated to warrant liabilities		—		(391,335)
Other income (expense), net		661		(2,266)
Consolidated income (loss) before provision for income taxes	$	551,176	$	(1,759,797)

Six-Month Period Ended:	March 31,
	2023		2022
Loss from operations of reportable segements	$	(1,693,655)	$	(3,413,616)
General corporate expenses (b)		(2,229,347)		(3,447,197)
Interest income		7,325		5,813
Unrealized gain on change in fair value of warrants classified as a liability		613,100		782,500
Transaction cost allocated to warrant liabilities		—		(391,335)
Other income (expense), net		9,507		(16,873)
Consolidated loss before provision for income taxes	$	(3,293,070)	$	(6,480,708)

(a) Segment operating loss consists of net sales, less cost of sales, specifically identifiable research and development, and selling, general and administrative expenses.

(b) General corporate expenses consists of Selling, general and administrative expenses that are not specifically identifiable to a segment.