SEGMENT INFORMATION

9 Months Ended

Jun. 30, 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 June 30, 2023 is as follows:

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services and Kits		Security Products		Consolidated
Revenues:
Product revenues	$	230,544	$	—	$	86,406	$	316,950
Service revenues		174,962		—		250,732		425,694
Clinical laboratory service revenues		—		2,188,817		—		2,188,817
Less intersegment revenues		—		(14,120)		—		(14,120)
Total revenues		405,506		2,174,697		337,138		2,917,341
Gross profit		290,541		829,798		148,979		1,269,318
(Loss) income from segment operations (a)		(717,126)		14,742		(998,966)		(1,701,350)

NOTE G – SEGMENT INFORMATION, continued

Information regarding operations by segment for the three-month period ended June 30, 2022 is as follows:

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services		Security Products		Consolidated
Revenues:
Product revenues	$	—	$	79,512	$	140,253	$	219,765
Service revenues		109,395		—		73,401		182,796
Clinical laboratory service revenues		—		3,986,770		—		3,986,770
Less intersegment revenues		—		(92,960)		—		(92,960)
Total revenues	$	109,395	$	3,973,322	$	213,654	$	4,296,371
Gross profit	$	109,395	$	1,274,502	$	(344,639)	$	1,039,258
(Loss) income from segment operations (a)	$	(854,644)	$	425,706	$	(1,560,123)	$	(1,989,061)

Information regarding operations by segment for the nine-month period ended June 30, 2023 is as follows:

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services and Kits		Security Products		Consolidated
Revenues:
Product revenues	$	560,000	$	—	$	570,800	$	1,130,800
Service revenues		434,287		—		392,526		826,813
Clinical laboratory service revenues		—		10,726,214		—		10,726,214
Less intersegment revenues		—		(96,120)		—		(96,120)
Total revenues	$	994,287	$	10,630,094	$	963,326	$	12,587,707
Gross profit	$	676,942	$	4,413,130	$	364,364	$	5,454,436
(Loss) income from segment operations (a)	$	(2,623,502)	$	1,616,914	$	(2,388,417)	$	(3,395,005)

Information regarding operations by segment for the nine-month period ended June 30, 2022 is as follows:

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services		Security Products		Consolidated
Revenues:
Product revenues	$	—	$	602,356	$	852,071	$	1,454,427
Service revenues		357,076		—		213,683		570,759
Clinical laboratory service revenues		—		12,960,350		—		12,960,350
Less intersegment revenues		—		(376,176)		—		(376,176)
Total revenues	$	357,076	$	13,186,530	$	1,065,754	$	14,609,360
Gross profit	$	357,076	$	4,430,361	$	(150,556)	$	4,636,881
(Loss) income from segment operations (a)	$	(2,828,629)	$	1,175,106	$	(3,749,155)	$	(5,402,678)

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:	June 30,
	2023		2022
Loss from operations of reportable segments	$	(1,701,350)	$	(1,989,061)
General corporate expenses (b)		(1,157,759)		(867,583)
Interest income		26,783		—
Unrealized (loss) gain on change in fair value of warrants classified as a liability		(278,400)		1,758,200
Other expense, net		(3,469)		(26,352)
Consolidated loss before provision for income taxes	$	(3,114,195)	$	(1,124,796)

Nine-Month Period Ended:	June 30,
	2023		2022
Loss from operations of reportable segments	$	(3,395,005)	$	(5,402,678)
General corporate expenses (b)		(3,387,464)		(4,314,779)
Interest income		34,108		5,813
Unrealized gain on change in fair value of warrants classified as a liability		334,700		2,540,700
Transaction costs allocated to warrant liabilities		—		(391,335)
Other income (expense), net		6,396		(43,226)
Consolidated loss before provision for income taxes	$	(6,407,265)	$	(7,605,505)

(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.