Segment reporting

6 Months Ended

Jan. 31, 2017

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 11 – Segment reporting

The Company has three reportable segments: Clinical Labs, Life Sciences, and Therapeutics. The Clinical Labs segment provides diagnostic services to the health care community. The Life Sciences segment develops, manufactures, and markets products to research and pharmaceutical customers. The Therapeutic segment conducts research and development activities for therapeutic drug candidates.

The Company evaluates segment performance based on segment income (loss) before taxes. Costs excluded from segment income (loss) before taxes and reported as “Other” consist of corporate general and administrative costs which are not allocable to the three reportable segments. Legal fee expense incurred to defend the Company’s intellectual property and other general corporate matters is considered a component of the Other segment. Legal fee expense specific to other segments’ activities has been allocated to those segments. Legal settlements, net represent activities for which royalties would have been received by the Company’s Life Sciences segment had the Company had agreements in place with plaintiffs for the patents or products covered by the settlements.

Management of the Company assesses assets on a consolidated basis only and, therefore, assets by reportable segment have not been included in the reportable segments below. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies contained in the Company’s Annual Report on Form 10-K for the year ended July 31, 2016.

The following financial information represents the operating results of the reportable segments of the Company:

Three months ended January 31, 2017	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	18,837			—			—			—		$	18,837
Product revenues		—		$	6,983			—			—			6,983
Royalty and license fee income		—			440			—			—			440
		18,837			7,423			—			—			26,260
Operating costs, expenses and legal settlements, net:
Cost of clinical laboratory services		11,052			—			—			—			11,052
Cost of product revenues		—			3,520			—			—			3,520
Research and development		—			516		$	(33	)		—			483
Selling, general and administrative		5,897			2,905			—		$	2,363			11,165
Provision for uncollectible accounts receivable		594			85			—			—			679
Legal fee expense		49			16			—			305			370
Total operating costs, expenses and legal settlements, net		17,592			7,042			(33	)		2,668			27,269
Operating income (loss)		1,245			381			33			(2,668	)		(1,009	)
Other income (expense):
Interest		(28	)		12			—			95			79
Other		17			—			—			7			24
Foreign exchange loss		—			(94	)		—			—			(94	)
Income (loss) before income taxes	$	1,234		$	299		$	33		$	(2,566	)	$	(1,000	)
Depreciation and amortization included above	$	394		$	501		$	—		$	20		$	915
Share-based compensation included in above:
Cost of clinical laboratory services	$	1			—			—			—		$	1
Selling, general and administrative		23		$	15			—		$	202			240
Total	$	24		$	15		$	—		$	202		$	241
Capital expenditures	$	175		$	—		$	—		$	—		$	175

Three months ended January 31, 2016	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	17,523			—			—			—		$	17,523
Product revenues		—		$	6,578			—			—			6,578
Royalty and license fee income		—			459			—			—			459
		17,523			7,037			—			—			24,560
Operating costs, expenses and legal settlements, net:
Cost of clinical laboratory services		10,535			—			—			—			10,535
Cost of product revenues		—			3,206			—			—			3,206
Research and development		—			661		$	200			—			861
Selling, general and administrative		5,649			2,773			—		$	2,858			11,280
Provision for uncollectible accounts receivable		467			(8	)		—			—			459
Legal fee expense		57			5			—			2,349			2,411
Legal settlements, net		1,500			(13,150	)		—			—			(11,650	)
Total operating costs, expenses and legal settlements, net		18,208			(6,513	)		200			5,207			17,102
Operating income (loss)		(685	)		13,550			(200	)		(5,207	)		7,458
Other income (expense)
Interest		(23	)		17			—			(36	)		(42	)
Other		(1	)		—			—			12			11
Foreign exchange loss		—			(388	)		—			—			(388	)
Income (loss) before income taxes	$	(709	)	$	13,179		$	(200	)	$	(5,231	)	$	7,039
Depreciation and amortization included above	$	411		$	524		$	—		$	17		$	952
Share-based compensation included in above:
Cost of clinical laboratory services	$	2			—			—			—		$	2
Selling, general and administrative		9		$	5			—		$	94			108
Total	$	11		$	5		$	—		$	94		$	110
Capital expenditures	$	354		$	84		$	—		$	—		$	438

Six months ended January 31, 2017	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	37,395			—			—			—		$	37,395
Product revenues		—		$	14,409			—			—			14,409
Royalty and license fee income		—			740			—			—			740
		37,395			15,149			—			—			52,544
Operating costs, expenses and legal settlements, net:
Cost of clinical laboratory services		21,948			—			—			—			21,948
Cost of product revenues		—			6,829			—			—			6,829
Research and development		—			1,143		$	162			—			1,305
Selling, general and administrative		11,849			5,851			—		$	4,939			22,639
Provision for uncollectible accounts receivable		1,260			88			—			—			1,348
Legal fee expense		101			28			—			613			742
Total operating costs, expenses and legal settlements, net		35,158			13,939			162			5,552			54,811
Operating income (loss)		2,237			1,210			(162	)		(5,552	)		(2,267	)
Other income (expense):
Interest		(57	)		22			—			160			125
Other		119			—			—			24			143
Foreign exchange loss		—			(455	)		—			—			(455	)
Income (loss) before income taxes	$	2,299		$	777		$	(162	)	$	(5,368	)	$	(2,454	)
Depreciation and amortization included above	$	795		$	1,009		$	—		$	38		$	1,842
Share-based compensation included in above:
Cost of clinical laboratory services	$	3			—			—			—		$	3
Selling, general and administrative		40		$	26			—		$	323			389
Total	$	43		$	26		$	—		$	323		$	392
Capital expenditures	$	587		$	102		$	—		$	—		$	689

Six months ended January 31, 2016	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	34,613			—			—			—		$	34,613
Product revenues		—		$	14,265			—			—			14,265
Royalty and license fee income		—			859			—			—			859
		34,613			15,124			—			—			49,737
Operating costs, expenses and legal settlements, net:
Cost of clinical laboratory services		20,867			—			—			—			20,867
Cost of product revenues		—			6,817			—			—			6,817
Research and development		—			1,328		$	400			—			1,728
Selling, general and administrative		10,935			5,832			—		$	4,738			21,505
Provision for uncollectible accounts receivable		1,175			(12	)		—			—			1,163
Legal fee expense		66			(17	)		—			3,963			4,012
Legal settlements, net		1,500			(19,950	)		—			—			(18,450	)
Total operating costs, expenses and legal settlements, net		34,543			(6,002	)		400			8,701			37,642
Operating income (loss)		70			21,126			(400	)		(8,701	)		12,095
Other income (expense)
Interest		(42	)		31			—			(71	)		(82	)
Other		3			39			—			23			65
Foreign exchange loss		—			(518	)		—			—			(518	)
Income (loss) before income taxes	$	31		$	20,678		$	(400	)	$	(8,749	)	$	11,560
Depreciation and amortization included above	$	808		$	1,054		$	—		$	40		$	1,902
Share-based compensation included in above:
Cost of clinical laboratory services	$	3			—			—			—		$	3
Selling, general and administrative		19		$	10			—		$	189			218
Total	$	22		$	10		$	—		$	189		$	221
Capital expenditures	$	791		$	152		$	—		$	—		$	943