SEGMENT AND GEOGRAPHIC AREA INFORMATION

12 Months Ended

Sep. 30, 2023

SEGMENT AND GEOGRAPHIC AREA INFORMATION

SEGMENT AND GEOGRAPHIC AREA INFORMATION

NOTE K – SEGMENT AND GEOGRAPHIC AREA INFORMATION

As detailed in Note C 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 Chief Operating Decision Maker (CODM).

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

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services		Security Products		Consolidated
Revenues:
Product revenues	$	560,000	$	—	$	658,185	$	1,218,185
Service revenues		506,285		—		490,581		996,866
Clinical laboratory service revenues		—		11,253,312		—		11,253,312
Less intersegment revenues		—		(100,920)		—		(100,920)
Total revenues	$	1,066,285	$	11,152,392	$	1,148,766	$	13,367,443
Gross profit	$	748,940	$	4,409,186	$	375,306	$	5,533,432
(Loss) income from segment operations (a)	$	(3,792,871)	$	1,206,652	$	(3,550,794)	$	(6,137,013)

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

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services		Security Products		Consolidated
Revenues:
Product revenues	$	—	$	628,286	$	1,254,518	$	1,882,804
Service revenues		439,355		—		319,783		759,138
Clinical laboratory service revenues		—		15,979,631		—		15,979,631
Less intersegment revenues		—		(452,896)		—		(452,896)
Total revenues		439,355		16,155,021		1,574,301		18,168,677
Gross profit		439,355		4,827,672		(213,387)		5,053,640
Loss from segment operations (a)		(4,497,699)		(464,894)		(4,652,786)		(9,615,379)

Reconciliation of segment loss from operations to corporate loss:

	September 30,
	2023		2022
Loss from operations of reportable segments	$	(6,137,013)	$	(9,615,379)
General corporate expenses (b)		(4,816,277)		(4,354,384)
Interest income		75,332		7,200
Unrealized gain on change in fair value of warrants classified as a liability		854,400		17,999,521
Transaction costs allocated to warrant liabilities		—		(1,668,112)
Loss on issuance of warrants		—		(10,591,600)
Other income (expense), net		642		(47,305)
Consolidated loss before provision for income taxes	$	(10,022,916)	$	(8,270,059)

(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.

NOTE K – SEGMENT AND GEOGRAPHIC AREA INFORMATION, continued

The Company attributes net revenues from external customers according to the geographic location of the customer. Net revenues by geographic location of customers are as follows:

	Year Ended September 30,
	2023		2022
Americas	$	12,222,650	$	17,544,444
Europe		258,355		448,847
Asia and other		886,438		175,386
Total	$	13,367,443	$	18,168,677