SEGMENT INFORMATION

6 Months Ended

Mar. 31, 2024

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE H – 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, 2024 is as follows:

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services and Kit		Security Products		Consolidated
Revenues
Product revenues	$	258,152	$	—	$	134,973	$	393,125
Service revenues		65,200		—		140,286		205,486
Clinical laboratory service revenues		—		335,580		—		335,580
Less intersegment revenues		—		(4,560)		—		(4,560)
Total revenues	$	323,352	$	331,020	$	275,259	$	929,631
Gross profit	$	190,588	$	18,515	$	86,548	$	295,651
(Loss) from segment operations (a)	$	(1,165,449)	$	(298,591)	$	(500,052)	$	(1,964,092)

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	$	203,951	$	—	$	93,503	$	297,454
Service revenues		135,581		—		33,477		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)

Information regarding operations by segment for the six-month period ended March  31, 2024 is as follows:

	Therapeutic DNA		MDx Testing		DNA Tagging and
	Production		Services		Security Products		Consolidated
Revenues:
Product revenues	$	258,152	$	—	$	442,290	$	700,442
Service revenues		142,735		—		309,898		452,633
Clinical laboratory service revenues		—		678,320		—		678,320
Less intersegment revenues		—		(10,600)		—		(10,600)
Total revenues	$	400,887	$	667,720	$	752,188	$	1,820,795
Gross profit	$	268,123	$	(44,443)	$	303,068	$	526,748
(Loss) income from segment operations (a)	$	(2,424,495)	$	(795,103)	$	(1,284,355)	$	(4,503,953)

NOTE H – SEGMENT INFORMATION, continued

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	$	331,457	$	—	$	482,393	$	813,850
Service revenues		257,324		—		143,795		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)

Reconciliation of loss from segment operations to Corporate (loss) income for the three-month periods ended:

	March 31,
	2024		2023
Loss from operations of reportable segments	$	(1,964,092)	$	(1,476,571)
General corporate expenses (b)		(1,653,659)		(1,227,453)
Interest income		15,352		3,639
Unrealized gain on change in fair value of warrants classified as a liability		1,765,000		3,250,900
Unrealized loss on change in fair value of warrants classified as a liability - warrant modification		(394,000)		—
Transaction costs allocated to registered direct offering		(633,198)		—
Loss on issuance of warrants		(1,633,767)		—
Other (expense) income, net		4,581		661
Consolidated (loss) income before provision for income taxes	$	(4,493,783)	$	551,176

Reconciliation of loss from segment operations to Corporate loss for the six-month periods ended:

	March 31,
	2024		2023
Loss from operations of reportable segments	$	(4,503,953)	$	(1,693,655)
General corporate expenses (b)		(2,902,865)		(2,229,347)
Interest income		48,676		7,325
Unrealized gain on change in fair value of warrants classified as a liability		4,404,000		613,100
Unrealized loss on change in fair value of warrants classified as a liability - warrant modification		(394,000)		—
Transaction costs allocated to registered direct offering		(633,198)		—
Loss on issuance of warrants		(1,633,767)		—
Other (expense) income, net		(8,957)		9,507
Consolidated loss before provision for income taxes	$	(5,624,064)	$	(3,293,070)

(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 consist of selling, general and administrative expenses that are not specifically identifiable to a segment.