Segment Reporting

6 Months Ended

Jan. 31, 2023

Segment Reporting [Abstract]

Segment reporting

Note 11 - Segment reporting

The Company has two reportable segments: Clinical Services and Products. The Clinical Services segment provides diagnostic services to the health care community. The Company’s Products segment develops, manufactures, and markets products to research and pharmaceutical customers. 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 two reportable segments.

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. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

At the beginning of fiscal 2023, we determined we would redirect our research resources and efforts to our two operating segments, Enzo Life Sciences and Enzo Clinical Labs, and as a result, Enzo Therapeutics no longer meets the criteria for being a reportable segment. The operating expenses of Enzo Therapeutics are included in the “Other” segment for all periods presented.

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

Three months ended January 31, 2023	Clinical Services			Products			Other			Consolidated
Revenues	$	8,824		$	7,514			—		$	16,338
Operating costs and expenses:
Cost of revenues		10,463			4,616			—			15,079
Research and development		306			1,113			12			1,431
Selling, general and administrative		6,943			2,556			2,313			11,812
Legal fee expense		107			11			877			995
Total operating costs and expenses		17,819			8,296			3,202			29,317
Operating loss		(8,995	)		(782	)		(3,202	)		(12,979	)
Other income (expense):
Interest, net		(1	)		29			34			62
Other		7			2			116			125
Foreign exchange loss		—			1,472			—			1,472
(Loss) income before income taxes	$	(8,989	)	$	721		$	(3,052	)	$	(11,320	)
Depreciation and amortization included above	$	386			171			91			648
Share-based compensation included in above:
Selling, general and administrative		65			20			409			494
Cost of revenues		15			6			—			21
Total	$	80			26			409			515
Capital expenditures	$	196			632			41			869

Three months ended January 31, 2022	Clinical Services			Products			Other			Consolidated
Revenues	$	23,674		$	10,372			—		$	34,046
Operating costs and expenses:
Cost of revenues		12,586			5,252			—			17,838
Research and development		89			711			20			820
Selling, general and administrative		6,811			3,039			4,616			14,466
Legal fee expense		148			—			2,697			2,845
Total operating costs and expenses		19,634			9,002			7,333			35,969
Operating income (loss)		4,040			1,370			(7,333	)		(1,923	)
Other income (expense):
Interest, net		(3	)		9			62			68
Other		5			3			(358	)		(350	)
Foreign exchange loss		—			(450	)		—			(450	)
Income (loss) before income taxes	$	4,042		$	932		$	(7,629	)	$	(2,655	)
Depreciation and amortization included above	$	438			190			77			705
Share-based compensation included in above:
Selling, general and administrative		16			1			650			667
Cost of revenues		12			—			—			12
Total	$	28			1			650			679
Capital expenditures	$	283			730			201			1,214

Six months ended January 31, 2023	Clinical Services			Products			Other			Consolidated
Revenues	$	19,997		$	14,617			—		$	34,614
Operating costs and expenses:
Cost of revenues		20,545			9,205			—			29,750
Research and development		603			1,803			21			2,427
Selling, general and administrative		13,493			4,986			4,784			23,263
Legal fee expense		171			36			1,859			2,066
Total operating costs and expenses		34,812			16,030			6,664			57,506
Operating loss		(14,815	)		(1,413	)		(6,664	)		(22,892	)
Other income (expense):
Interest, net		(3	)		54			81			132
Other		12			4			114			130
Foreign exchange loss		—			675			—			675
Loss before income taxes	$	(14,806	)	$	(680	)	$	(6,469	)	$	(21,955	)
Depreciation and amortization included above	$	918			336			174			1,428
Share-based compensation included in above:
Selling, general and administrative		114			40			749			903
Cost of revenues		31			11			—			42
Total	$	145			51			749			945
Capital expenditures	$	359			938			224			1,521

Six months ended January 31, 2022	Clinical Services			Products			Other			Consolidated
Revenues	$	43,415		$	17,150			—		$	60,565
Operating costs and expenses:
Cost of revenues		23,789			9,322			—			33,111
Research and development		96			1,443			25			1,564
Selling, general and administrative		12,812			6,134			6,572			25,518
Legal fee expense		205			13			3,909			4,127
Total operating costs and expenses		36,902			16,912			10,506			64,320
Operating income (loss)		6,513			238			(10,506	)		(3,755	)
Other income (expense):
Interest, net		(5	)		18			94			107
Other		54			5			(554	)		(495	)
Foreign exchange loss					(831	)		—			(831	)
Income (loss) before income taxes	$	6,562		$	(570	)	$	(10,966	)	$	(4,974	)
Depreciation and amortization included above	$	856			402			148			1,406
Share-based compensation included in above:
Selling, general and administrative		36			1			842			879
Cost of revenues		16			—			—			16
Total	$	52			1			842			895
Capital expenditures	$	593			1,216			438			2,247