Segment reporting

3 Months Ended

Oct. 31, 2020

Segment Reporting [Abstract]

Segment reporting

Note 11 – 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. All intersegment activities are eliminated.

Legal and related expenses 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 and related expenses specific to other segments’ activities are allocated to those segments.

Legal settlements, net, represent activities for which royalties would have been received in the Company’s 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:

Three months ended October 31, 2020	Clinical Services			Products			Therapeutics			Other			Consolidated
Revenues – Services and Products	$	21,223		$	7,432			—			—		$	28,655
Operating costs and expenses:
Cost of revenues		12,995			3,763			—			—			16,758
Research and development		121			592		$	33			—			746
Selling, general and administrative		6,098			2,445			17		$	1,454			10,014
Legal and related expenses		25			5			—			610			640
Total operating costs and expenses		19,239			6,805			50			2,064			28,158
Operating income (loss)		1,984			627			(50	)		(2,064	)		497
Other income (expense):
Interest		(6	)		10			—			(55	)		(51	)
Other		15			2			—			—			17
Foreign exchange loss		—			(164	)		—			—			(164	)
Net income (loss)	$	1,993		$	475		$	(50	)	$	(2,119	)	$	299
Depreciation and amortization included above	$	409		$	185		$	—		$	66		$	660
Share-based compensation included in above:
Selling, general and administrative		9			16			—			129			154
Cost of revenues		13			—			—			—			13
Total	$	22		$	16		$	—		$	129		$	167
Capital expenditures	$	540		$	44		$	—		$	33		$	617

Three months ended October 31, 2019	Clinical Services			Products			Therapeutics			Other			Consolidated
Revenues	$	12,780		$	7,427			—			—		$	20,207
Operating costs and expenses:
Cost of revenues		10,975			3,546			—			—			14,521
Research and development		350			516			188			—			1,054
Selling, general and administrative		6,215			2,757			—			2,167			11,139
Legal fee expense		50			—			—			1,646			1,696
Total operating costs and expenses		17,590			6,819			188			3,813			28,410
Operating income (loss)		(4,810	)		608			(188	)		(3,813	)		(8,203	)
Other income (expense):
Interest		(12	)		18			—			231			237
Other		3			(12	)		—			136			127
Foreign exchange loss		—			191			—			—			191
Net (loss) income	$	(4,819	)		805			(188	)		(3,446	)		(7,648	)
Depreciation and amortization included above	$	409			251			—			65			725
Share-based compensation included in above:
Selling, general and administrative		34			22			—			163			219
Total	$	34			22			—			163			219
Capital expenditures	$	147			127			—			—			274