Segment reporting

12 Months Ended

Jul. 31, 2019

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 16 - Segment reporting

The Company has three reportable segments: Life Sciences Products, Clinical Laboratory Services and Therapeutics. The Company’s Life Sciences Products segment develops, manufactures, and markets products to research and pharmaceutical customers. The Clinical Laboratory 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 Life Sciences Products 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:

Year ended July 31, 2019	Clinical Laboratory Services			Life Sciences Products			Therapeutics			Other			Consolidated
Revenues	$	51,115		$	30,055		$	—		$	—		$	81,170
Operating costs, expenses and legal settlements, net:
Cost of revenues		44,226			13,696			—			—			57,922
Research and development		31			2,257			887			—			3,175
Selling, general and administrative		24,230			11,860			—			8,175			44,265
Legal fee expense		159			27			—			2,814			3,000
Legal settlements, net		—			(28,925	)		—			—			(28,925	)
Total operating costs, expenses and legal settlements, net		68,646			(1,085	)		887			10,989			79,437
Operating income (loss)		(17,531	)		31,140			(887	)		(10,989	)		1,733
Other income (expense) Interest		(64	)		67			—			1,053			1,056
Other		16			2			—			364			382
Foreign exchange loss		—			(682	)		—			—			(682	)
Income (loss) before taxes	$	(17,579	)	$	30,527		$	(887	)	$	(9,572	)	$	2,489
Depreciation and amortization included above	$	1,625		$	1,221		$	—		$	190		$	3,036
Share-based compensation included above:
Selling, general and administrative		147			95			—		$	697			939
Total	$	147		$	95		$	—		$	697		$	939
Capital expenditures	$	1,374		$	605		$	—		$	6,147		$	8,126

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

Year ended July 31, 2018	Clinical Laboratory Services			Life Sciences Products			Therapeutics			Other			Consolidated
Revenues	$	71,077		$	29,936		$	—		$	—		$	101,013
Operating costs, expenses and legal settlements, net:
Cost of revenues		46,008			14,377			—			—			60,385
Research and development		—			2,305			905			—			3,210
Selling, general and administrative		24,656			11,617			—			8,182			44,455
Legal fee expense		67			58			—			5,002			5,127
Total operating costs, expenses and legal settlements, net		70,731			28,357			905			13,184			113,177
Operating income (loss)		346			1,579			(905	)		(13,184	)		(12,164	)
Other income (expense) Interest		(91	)		50			—			894			853
Other		29			11			—			128			168
Foreign exchange loss		—			(275	)		—			—			(275	)
Income (loss) before taxes	$	284		$	1,365		$	(905	)	$	(12,162	)	$	(11,418	)
Depreciation and amortization included above	$	1,667		$	1,387		$	—		$	76		$	3,130
Share-based compensation included in above:
Selling, general and administrative		125			79			—		$	609			813
Total	$	125		$	79		$	—		$	609		$	813
Capital expenditures	$	1,685		$	203		$	—		$	—		$	1,888

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

Year ended July 31, 2017	Clinical Laboratory Services			Life Sciences Products			Therapeutics			Other			Consolidated
Total revenues	$	74,689		$	30,397		$	—		$	—		$	105,086
Operating costs, expenses and legal settlements, net:
Cost of product revenues		45,400			14,078			—			—			59,478
Research and development		—			2,311			617			—			2,928
Selling, general and administrative		24,465			11,289			—			8,395			44,149
Legal fee expense		146			79			—			1,454			1,679
Total operating costs, expenses and legal settlements, net		70,011			27,757			617			9,849			108,234
Operating income (loss)		4,678			2,640			(617	)		(9,849	)		(3,148	)
Other income (expense)
Interest		(112	)		46			—			450			384
Other		137			(60	)		—			48			125
Foreign exchange gain		—			135			—			—			135
Income (loss) before taxes	$	4,703		$	2,761		$	(617	)	$	(9,351	)	$	(2,504	)
Depreciation and amortization included above	$	1,586		$	1,913		$	—		$	99		$	3,598
Share-based compensation included above:
Cost of clinical laboratory services	$	6		$	—		$	—		$	—		$	6
Selling, general and administrative		111			74			—		$	640			825
Total	$	117		$	74		$	—		$	640		$	831
Capital expenditures	$	1,363		$	390		$	—		$	—		$	1,753

Geographic financial information is as follows:

Net sales to unaffiliated customers:	2019		2018		2017
United States	$	72,387	$	91,688	$	96,751
Switzerland		2,611		2,584		2,371
United Kingdom		1,611		1,851		1,673
Other international countries		4,561		4,890		4,291
Total	$	81,170	$	101,013	$	105,086

Long-lived assets at July 31,	2019		2018
United States	$	22,057	$	16,210
Switzerland		376		502
United Kingdom		64		127
Other international countries		96		135
Total	$	22,593	$	16,974

The Company’s reportable segments are determined based on the services they perform, the products they sell, and the royalties and license fee income they earn, not on the geographic area in which they operate. The Company’s Clinical Laboratory Services segment operates 100% in the United States with all revenue derived there. The Life Sciences Products segment earns product revenue both in the United States and foreign countries and royalty and license fee income in the United States. The following is a summary of the Life Sciences Products segment revenues attributable to customers located in the United States and foreign countries:

	2019		2018		2017
United States	$	21,272	$	20,610	$	22,062
Foreign countries		8,783		9,326		8,335
	$	30,055	$	29,936	$	30,397