Segment reporting

3 Months Ended

Oct. 31, 2017

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 10 – 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. When recognized, legal settlements, net represents 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, 2017.

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

Three months ended October 31, 2017	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	20,334			—			—			—		$	20,334
Product revenues		—		$	7,081			—			—			7,081
Royalty and license fee income		—			261			—			—			261
		20,334			7,342			—			—			27,676
Operating costs and expenses:
Cost of clinical laboratory services		12,042			—			—			—			12,042
Cost of product revenues		—			3,389			—			—			3,389
Research and development		—			523		$	224			—			747
Selling, general and administrative		6,095			2,614			—		$	2,182			10,891
Provision for uncollectible accounts receivable		800			14			—			—			814
Legal fee expense		13			3			—			415			431
Total operating costs and expenses		18,950			6,543			224			2,597			28,314
Operating income (loss)		1,384			799			(224	)		(2,597	)		(638	)
Other income (expense):
Interest		(25	)		12			—			170			157
Other		14			7			—			15			36
Foreign exchange loss		—			(195	)		—			—			(195	)
Income (loss) before income taxes	$	1,373		$	623		$	(224	)	$	(2,412	)	$	(640	)
Depreciation and amortization included above	$	404		$	326		$	—		$	19		$	749
Share-based compensation included in above:
Selling, general and administrative		32		$	23			—		$	150			205
Total	$	32		$	23		$	—		$	150		$	205
Capital expenditures	$	418		$	43		$	—		$	—		$	461

Three months ended October 31, 2016	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	18,558			—			—			—		$	18,558
Product revenues		—		$	7,426			—			—			7,426
Royalty and license fee income		—			300			—			—			300
		18,558			7,726			—			—			26,284
Operating costs, expenses and legal settlements, net:
Cost of clinical laboratory services		10,896			—			—			—			10,896
Cost of product revenues		—			3,309			—			—			3,309
Research and development		—			627		$	195			—			822
Selling, general and administrative		5,952			2,946			—		$	2,596			11,494
Provision for uncollectible accounts receivable		666			3			—			—			669
Legal fee expense		52			12			—			308			372
Total operating costs, expenses and legal settlements, net		17,566			6,897			195			2,904			27,562
Operating income (loss)		992			829			(195	)		(2,904	)		(1,278	)
Other income (expense):
Interest		(29	)		10			—			65			46
Other		102			—			—			17			119
Foreign exchange loss		—			(361	)		—			—			(361	)
Income (loss) before income taxes	$	1,065		$	478		$	(195	)	$	(2,822	)	$	(1,474	)
Depreciation and amortization included above	$	401		$	508		$	—		$	18		$	927
Share-based compensation included in above:
Selling, general and administrative		17		$	11			—		$	121			149
Total	$	19		$	11		$	—		$	121		$	151
Capital expenditures	$	412		$	102		$	—		$	—		$	514