Segment reporting

9 Months Ended

Apr. 30, 2019

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 10 – Segment reporting

The Company has three reportable segments: Products, Clinical Services and Therapeutics. The Company’s Products segment develops, manufactures, and markets products to research and pharmaceutical customers. The Clinical Services segment provides diagnostic services to the health care community. The Company’s Therapeutics 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, which may result in settlements recognized in another segment and other general corporate matters are considered a component of the Other segment. Legal fee expense specific to other segments’ activities have been allocated to those segments.

Legal settlements, net, represent activities for which royalties would have been received in the Company’s Products segment and expenses related to an investigation within the Clinical Services segment. 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.

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

Three months ended April 30, 2019	Clinical Services			Products			Therapeutics			Other			Consolidated
Revenues	$	11,751		$	7,911			—			—		$	19,662
Operating costs, expenses and legal settlements, net:
Cost of revenues		10,963			3,397			—			—			14,360
Research and development		31			527		$	223			—			781
Selling, general and administrative		5,960			2,923			—		$	2,037			10,920
Legal fee expense		35			16			—			206			257
Legal settlements, net		—			(28,925	)		—			—			(28,925	)
Total operating costs, expenses and legal settlements, net		16,989			(22,062	)		223			2,243			(2,607	)
Operating income (loss)		(5,238	)		29,973			(223	)		(2,243	)		22,269
Other income (expense):
Interest		(18	)		19			—			257			258
Other		6			—			—			64			70
Foreign exchange loss		—			(332	)		—			—			(332	)
Income (loss) before income taxes	$	(5,250	)	$	29,660		$	(223	)	$	(1,922	)	$	22,265
Depreciation and amortization included above	$	440		$	340		$	—		$	58		$	838
Share-based compensation included in above:
Selling, general and administrative		40			24			—			135			199
Total	$	40		$	24		$	—		$	135		$	199
Capital expenditures	$	120		$	446		$	—		$	—		$	566

Three months ended April 30, 2018	Clinical Services			Products			Therapeutics			Other			Consolidated
Revenues	$	17,737		$	7,493			—			—		$	25,230
Operating costs and expenses:
Cost of revenues		10,995			3,562			—			—			14,557
Research and development		—			576		$	223			—			799
Selling, general and administrative		6,252			2,970			—		$	1,799			11,021
Legal fee expense		25			19			—			1,607			1,651
Total operating costs and expenses		17,272			7,127			223			3,406			28,028
Operating income (loss)		465			366			(223	)		(3,406	)		(2,798	)
Other income (expense):
Interest		(22	)		12			—			237			227
Other		15			2			—			—			17
Foreign exchange loss		—			(462	)		—			—			(462	)
Income (loss) before income taxes	$	458		$	(82	)	$	(223	)	$	(3,169	)	$	(3,016	)
Depreciation and amortization included above	$	437		$	358		$	—		$	20		$	815
Share-based compensation included in above:
Selling, general and administrative		26			17			—			161			204
Total	$	26		$	17		$	—		$	161		$	204
Capital expenditures	$	465		$	96		$	—		$	—		$	561

Nine months ended April 30, 2019	Clinical Services			Products			Therapeutics			Other			Consolidated
Revenues	$	38,048		$	22,201			—			—		$	60,249
Operating costs, expenses and legal settlements, net:
Cost of revenues		32,956			10,391			—			—			43,347
Research and development		31			1,645		$	666			—			2,342
Selling, general and administrative		18,220			8,828			—		$	6,339			33,387
Legal fee expense		109			24			—			2,567			2,700
Legal settlements, net		—			(28,925	)		—			—			(28,925	)
Total operating costs, expenses and legal settlements, net		51,316			(8,037	)		666			8,906			52,851
Operating income (loss)		(13,268	)		30,238			(666	)		(8,906	)		7,398
Other income (expense):
Interest		(51	)		49			—			761			759
Other		17			—			—			232			249
Foreign exchange loss (gain)		—			(530	)		—			—			(530	)
(Loss) income before income taxes	$	(13,302	)	$	29,757		$	(666	)	$	(7,913	)	$	7,876
Depreciation and amortization included above	$	1,217		$	1,025		$	—		$	130		$	2,372
Share-based compensation included in above:
Selling, general and administrative		118			74			—			533			725
Total	$	118		$	74		$	—		$	533		$	725
Capital expenditures	$	883		$	524		$	—		$	6,147		$	7,554

Nine months ended April 30, 2018	Clinical Services			Products		Therapeutics			Other			Consolidated
Revenues	$	56,001		$	22,257		—			—		$	78,258
Operating costs and expenses:
Cost of revenues		34,767			10,828		—			—			45,595
Research and development		—			1,690	$	668			—			2,358
Selling, general and administrative		18,454			8,476		—		$	6,045			32,975
Legal fee expense		46			47		—			3,689			3,782
Total operating costs and expenses		53,267			21,041		668			9,734			84,710
Operating income (loss)		2,734			1,216		(668	)		(9,734	)		(6,452	)
Other income (expense):
Interest		(70	)		35		—			604			569
Other		32			10		—			44			86
Foreign exchange loss		—			143		—			—			143
Income (loss) before income taxes	$	2,696		$	1,404	$	(668	)	$	(9,086	)	$	(5,654	)
Depreciation and amortization included above	$	1,254		$	1,039	$	—		$	57		$	2,350
Share-based compensation included in above:
Selling, general and administrative		86			61		—			470			617
Total	$	86		$	61	$	—		$	470		$	617
Capital expenditures	$	1,459		$	167	$	—		$	—		$	1,626