Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jul. 31, 2021 | Oct. 11, 2021 | Jan. 31, 2021 | |
Document Information Line Items | |||
Entity Registrant Name | ENZO BIOCHEM, INC. | ||
Trading Symbol | ENZ | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Common Stock, Shares Outstanding | 48,471,771 | ||
Entity Public Float | $ 126,324,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000316253 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Jul. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-09974 | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 13-2866202 | ||
Entity Address, Address Line One | 527 Madison Ave. | ||
Entity Address, State or Province | NY | ||
Entity Address, City or Town | New York | ||
Entity Address, Postal Zip Code | 10022 | ||
City Area Code | (212) | ||
Local Phone Number | 583-0100 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2021 | Jul. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 13,524 | $ 47,865 |
Marketable securities | 29,978 | |
Accounts receivable, net | 10,198 | 9,141 |
Inventories | 12,652 | 7,784 |
Prepaid expenses | 4,230 | 3,975 |
Total current assets | 70,582 | 68,765 |
Property, plant, and equipment, net | 16,585 | 14,482 |
Right-of-use assets | 17,020 | 19,916 |
Goodwill | 7,452 | 7,452 |
Intangible assets, net | 244 | 538 |
Other, including restricted cash of $750 | 1,808 | 1,385 |
Total assets | 113,691 | 112,538 |
Current liabilities: | ||
Accounts payable - trade | 8,123 | 8,503 |
Accrued liabilities | 14,301 | 12,833 |
Current portion of operating lease liabilities | 3,419 | 4,121 |
Other current liabilities and finance leases short term | 233 | 344 |
Other short term debt | 7,000 | |
Total current liabilities | 26,076 | 32,801 |
Other liabilities and finance leases long term | 115 | 192 |
Operating lease liabilities, non-current | 14,558 | 16,679 |
Long term debt - net | 4,356 | 4,485 |
Total liabilities | 45,105 | 54,157 |
Commitments and contingencies – see Notes 15 and 16 | ||
Stockholders’ equity: | ||
Preferred Stock, $.01 par value; authorized 25,000,000 shares; no shares issued or outstanding | ||
Common Stock, $.01 par value; authorized 75,000,000 shares; shares issued and outstanding: 48,471,771 at July 31, 2021 and 47,895,050 at July 31, 2020 | 485 | 479 |
Additional paid-in capital | 337,126 | 334,473 |
Accumulated deficit | (270,377) | (278,252) |
Accumulated other comprehensive income | 1,352 | 1,681 |
Total stockholders’ equity | 68,586 | 58,381 |
Total liabilities and stockholders’ equity | $ 113,691 | $ 112,538 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jul. 31, 2021 | Jul. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Other, including restricted cash (in Dollars) | $ 750 | $ 750 |
Preferred stock par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 48,471,771 | 47,895,050 |
Common stock, shares outstanding | 48,471,771 | 47,895,050 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Income Statement [Abstract] | |||
Revenues | $ 117,731 | $ 76,021 | $ 81,170 |
Operating costs, expenses and legal settlements, net: | |||
Cost of revenues | 64,154 | 52,251 | 57,922 |
Research and development | 3,252 | 4,448 | 3,175 |
Selling, general, and administrative | 44,905 | 42,960 | 44,265 |
Legal and related expenses | 4,728 | 6,729 | 3,000 |
Legal settlements, net | (28,925) | ||
Total costs, expenses and legal settlements, net | 117,039 | 106,388 | 79,437 |
Operating income (loss) | 692 | (30,367) | 1,733 |
Other income (expense): | |||
Interest | 8 | 454 | 1,056 |
Other | 6,905 | 488 | 382 |
Foreign exchange gain (loss) | 270 | 905 | (682) |
Income (loss) before income taxes | 7,875 | (28,520) | 2,489 |
Income taxes | |||
Net income (loss) | $ 7,875 | $ (28,520) | $ 2,489 |
Net (loss) income per common share: | |||
Basic (in Dollars per share) | $ 0.16 | $ (0.60) | $ 0.05 |
Diluted (in Dollars per share) | $ 0.16 | $ (0.60) | $ 0.05 |
Weighted average common shares outstanding: | |||
Basic (in Shares) | 48,191 | 47,696 | 47,351 |
Diluted (in Shares) | 48,325 | 47,696 | 47,476 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 7,875 | $ (28,520) | $ 2,489 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (329) | (899) | 480 |
Comprehensive income (loss) | $ 7,546 | $ (29,419) | $ 2,969 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total |
Balance at Jul. 31, 2018 | $ 472 | $ 330,770 | $ (252,221) | $ 2,100 | $ 81,121 |
Balance (in Shares) at Jul. 31, 2018 | 47,182,254 | ||||
Net income | 2,489 | 2,489 | |||
Vesting of restricted stock | |||||
Vesting of restricted stock (in Shares) | 986 | ||||
Share-based compensation charges | 939 | 939 | |||
Issuance of common stock for employee 401(k) plan match | $ 3 | 829 | 832 | ||
Issuance of common stock for employee 401(k) plan match (in Shares) | 315,472 | ||||
Net issuance of common stock for options exercise by Directors | |||||
Net issuance of common stock for options exercise by Directors (in Shares) | 23,376 | ||||
Exercise of stock options | $ 1 | 166 | 167 | ||
Exercise of stock options (in Shares) | 34,719 | ||||
Foreign currency translation adjustments | 480 | 480 | |||
Balance at Jul. 31, 2019 | $ 476 | 332,704 | (249,732) | 2,580 | 86,028 |
Balance (in Shares) at Jul. 31, 2019 | 47,556,807 | ||||
Net income | (28,520) | (28,520) | |||
Vesting of restricted stock | |||||
Vesting of restricted stock (in Shares) | 811 | ||||
Issuance of common stock for share-based compensation | 10 | 10 | |||
Issuance of common stock for share-based compensation (in Shares) | 4,167 | ||||
Share-based compensation charges | 923 | 923 | |||
Issuance of common stock for employee 401(k) plan match | $ 3 | 836 | 839 | ||
Issuance of common stock for employee 401(k) plan match (in Shares) | 333,265 | ||||
Foreign currency translation adjustments | (899) | (899) | |||
Balance at Jul. 31, 2020 | $ 479 | 334,473 | (278,252) | 1,681 | 58,381 |
Balance (in Shares) at Jul. 31, 2020 | 47,895,050 | ||||
Net income | 7,875 | 7,875 | |||
Vesting of restricted stock | |||||
Vesting of restricted stock (in Shares) | 817 | ||||
Share-based compensation charges | 907 | 907 | |||
Issuance of common stock for employee 401(k) plan match | $ 2 | 778 | $ 780 | ||
Issuance of common stock for employee 401(k) plan match (in Shares) | 208,537 | 332,700 | |||
Exercise of stock options | $ 1 | 96 | $ 97 | ||
Exercise of stock options (in Shares) | 34,667 | ||||
Issuance of common stock for previously accrued bonuses | $ 3 | 872 | 875 | ||
Issuance of common stock for previously accrued bonuses (in Shares) | 332,700 | ||||
Foreign currency translation adjustments | (329) | (329) | |||
Balance at Jul. 31, 2021 | $ 485 | $ 337,126 | $ (270,377) | $ 1,352 | $ 68,586 |
Balance (in Shares) at Jul. 31, 2021 | 48,471,771 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ 7,875 | $ (28,520) | $ 2,489 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization of property, plant and equipment | 2,332 | 2,256 | 2,194 |
Amortization of intangible assets | 321 | 524 | 842 |
Share-based compensation charges | 907 | 933 | 939 |
Share-based 401(k) employer match expense | 731 | 836 | 855 |
Foreign exchange (gain) loss | (88) | (1,165) | 493 |
Unrealized loss on marketable securities | 83 | ||
Paycheck Protection Program (PPP) loan forgiveness | (7,000) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,110) | 1,617 | 2,404 |
Inventories | (4,937) | 85 | (572) |
Prepaid expenses and other assets | (707) | (216) | (182) |
Accounts payable - trade | (395) | 1,214 | (2,508) |
Accrued liabilities, other current liabilities and other liabilities | 2,375 | 5,257 | (2,148) |
Total adjustments | (7,488) | 11,341 | 2,317 |
Net cash provided by (used in) operating activities | 387 | (17,179) | 4,806 |
Cash flows from investing activities: | |||
Capital expenditures | (4,436) | (2,170) | (8,126) |
Purchases of marketable securities | (30,061) | ||
Net cash used in investing activities | (34,497) | (2,170) | (8,126) |
Cash flows from financing activities: | |||
Proceeds from borrowings under government programs and mortgage agreement | 7,412 | 4,500 | |
Repayments under mortgage agreement and capital leases | (339) | (411) | (404) |
Cost to obtain loan | (70) | ||
Proceeds from exercise of stock options | 97 | 167 | |
Net cash (used in) provided by financing activities | (242) | 7,001 | 4,193 |
Effect of exchange rate changes on cash and cash equivalents | 11 | 67 | (18) |
(Decrease) increase in cash and cash equivalents and restricted cash | (34,341) | (12,281) | 855 |
Cash and cash equivalents and restricted cash - beginning of year | 48,615 | 60,896 | 60,041 |
Cash and cash equivalents and restricted cash - end of year | 14,274 | 48,615 | 60,896 |
Composition of cash and cash equivalents and restricted cash is as follows: | |||
Cash and cash equivalents | 13,524 | 47,865 | 60,146 |
Restricted cash | 750 | 750 | 750 |
Total cash and cash equivalents and restricted cash | $ 14,274 | $ 48,615 | $ 60,896 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 1 - Summary of significant accounting policies Nature of business Enzo Biochem, Inc. (the “Company”) is an integrated diagnostics, clinical lab, and life sciences company engaged in research, development, manufacturing and marketing of diagnostic and research products based on genetic engineering, biotechnology and molecular biology. These products are designed for the diagnosis of and/or screening for infectious diseases, cancers, genetic defects and other medically pertinent diagnostic information and are distributed in the United States and internationally. The Company is conducting research and development activities in the development of therapeutic products based on the Company’s technology platform of genetic modulation and immune modulation. The Company also operates a clinical laboratory that offers and provides molecular and esoteric diagnostic medical testing services in the New York, New Jersey, and Connecticut medical communities. The Company operates in three segments (see Note 17). Impact of COVID-19 pandemic While the rate of transmission of COVID-19 fluctuates in the US and Europe, it continues to spread in other parts of the world and negatively impact the world economy. Federal, state and local governmental policies and initiatives designed to reduce the transmission of COVID-19 have resulted in, among other things, a significant reduction in physician office visits, the cancellation of elective medical procedures, customers of our products remaining closed or continuing to severely curtail their operations (voluntarily or in response to government orders), and the continuation of work-from-home or shelter-in-place policies. The COVID-19 impact on the Company’s operations is consistent with the overall industry and publicly issued statements from competitors, partners, and vendors. During the fiscal year ended July 31, 2021, the Company generated substantial increases in COVID-19 related products and services. Enzo applied its technical expertise in molecular diagnostics to develop next generation COVID-19 diagnostic and antibody testing options which were approved under the FDA Emergency Use Authorization (EUA). This testing had a positive impact on revenue, profitability and cash flow throughout fiscal 2021. Revenues from COVID-19 testing represented 48% and 8% of Clinical revenues in the 2021 and 2020 periods, respectively. However, it is too early to determine the long term significance of any positive impact from increased COVID-19 testing and our proprietary COVID-19 product offerings on our businesses. The extent to which our businesses may continue to be affected by the COVID-19 pandemic will largely depend on both current and future developments, including its duration, the emergence and spread of variants, its treatment with authorized vaccines and vaccines in various stages of development and federal approval, work and travel advisories and restrictions, and the timing of their easing, all of which are highly uncertain and cannot be reasonably predicted at this time. Global supply chain issues due to the pandemic continue to hamper both the manufacturing of products within the life science segment as well as testing capabilities in the clinical laboratory. The extent to which the COVID-19 pandemic impacts the Company’s business and consolidated results of operations, financial position and cash flows will depend on numerous evolving factors including, but not limited to: the magnitude and duration of the COVID-19 pandemic, the extent to which it will impact worldwide macroeconomic conditions including, but not limited to, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. These factors are beyond the Company’s knowledge and control, and as a result, at this time the Company cannot reasonably estimate the adverse impact the COVID-19 pandemic will have on its businesses but the adverse impact could be material. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of July 31, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s patient self-pay revenue concessions and credit losses in the Clinical Services segment, accounts receivable, inventories and the carrying value of goodwill and other long-lived assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in additional material impacts to the Company’s consolidated financial statements in future reporting periods. We expect COVID-19 volume to decline in the quarters ahead as the percentage of Americans who are vaccinated increases. However, the emergence and spread of variants may cause our COVID-19 testing volume to increase again. Even after the COVID-19 pandemic has moderated and the business and social distancing restrictions have eased, we may continue to experience similar adverse effects to our businesses, consolidated results of operations, financial position and cash flows resulting from a recessionary economic environment that may persist. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was passed in March 2020 and addressed the various economic impacts of, and otherwise responds to, the COVID-19 outbreak. Under the CARES Act, we received a loan, an advance payment, and two income grants from Medicare during the latter half of our fiscal year ended July 31, 2020, all of which are further described in Note 3, Note 8 and Note 10. Principles of consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries, Enzo Clinical Labs, Inc., Enzo Life Sciences, Inc. (and its wholly-owned foreign subsidiaries), Enzo Therapeutics, Inc., Enzo Realty LLC (“Realty”) and Enzo Realty II, LLC (“Realty II”). All intercompany transactions and balances have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Contingencies Contingencies are evaluated and a liability is recorded when the matter is both probable and reasonably estimable. Gain contingencies are evaluated and not recognized until the gain is realizable or realized. Foreign Currency Translation/Transactions The Company has determined that the functional currency for its foreign subsidiaries is the local currency. For financial reporting purposes, assets and liabilities denominated in foreign currencies are translated at current exchange rates and profit and loss accounts are translated at weighted average exchange rates. Resulting translation gains and losses are included as a separate component of stockholders’ equity as accumulated other comprehensive income or loss. Gains or losses resulting from transactions entered into in other than the functional currency are recorded as foreign exchange gains and losses in the consolidated statements of operations. Fair Value Measurements The Company determines fair value measurements used in its consolidated financial statements based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy. The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3 Valuations derived from valuation techniques in which one or more significant inputs are unobservable. Cash and cash equivalents Cash and cash equivalents consist of demand deposits with banks and highly liquid money market funds. At July 31, 2021 and 2020, the Company had cash and cash equivalents in foreign bank accounts of $909. Marketable securities The Company limits its credit risk associated with investments by investing in a mutual fund and an exchange traded fund (ETF) which hold highly rated corporate bonds, asset backed securities, municipal bonds, mortgage obligations and government obligations. These investments are classified as trading securities and are Level 1 fair value investments. As of July 31, 2021, the fair value of these investments was $29,978 and the cost basis was $30,061. We recognized unrealized losses of $83 for the fiscal year ended July 31, 2021. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents and accounts receivable. The Company believes the fair value of the aforementioned financial instruments approximates the cost due to the immediate or short-term nature of these items. Concentration of credit risk with respect to the Company’s Life Sciences products segment is mitigated by the diversity of the Company’s customers and their dispersion across many different geographic regions. To reduce risk, the Company routinely assesses the financial strength of these customers and, consequently, believes that its accounts receivable credit exposure with respect to these customers is limited. The Company believes that the concentration of credit risk with respect to the Clinical Laboratory services accounts receivable is mitigated by the diversity of third party payers that insure individuals. To reduce risk, the Company routinely assesses the financial strength of these payers and, consequently, believes that its accounts receivable credit risk exposure, with respect to these payers, is limited. While the Company also has receivables due from the Federal Medicare program, the Company does not believe that these receivables represent a credit risk since the Medicare program is funded by the federal government and payment is primarily dependent on our submitting the appropriate documentation. Other than the Medicare program, two providers whose programs are included in the “Third party payers” and health maintenance organizations (“HMOs”) categories represent 35% of Clinical Services net revenue for the year ended July 31, 2021 and represent 27% of the Clinical Services net accounts receivable as of July 31, 2021. Other than the Medicare program, one provider whose programs are included in the “Third-party payers” and “Health Maintenance Organizations” (“HMO’s”) categories represents 24% and 36% of Clinical Services net revenue for the years ended July 31, 2020 and 2019 respectively, and represents 16% of the Clinical Services net accounts receivable as of July 31, 2020. Accrual for Self-Funded Employee Medical Insurance Accruals for self-funded employee medical insurance are determined based on a number of assumptions and factors, including historical payment trends, claims history and current estimates. These estimated liabilities are not discounted. If actual trends differ from these estimates, the financial results could be impacted. Contractual Adjustment The Company’s estimate of contractual adjustment is based on significant assumptions and judgments, such as its interpretation of payer reimbursement policies, and bears the risk of change. The estimation process is based on the experience of amounts approved as reimbursable and ultimately settled by payers, versus the corresponding gross amount billed to the respective payers. The contractual adjustment is an estimate that reduces gross revenue based on gross billing rates to amounts expected to be approved and reimbursed. Gross billings are based on a standard fee schedule the Company sets for all third-party payers, including Medicare, HMO’s and managed care providers. The Company adjusts the contractual adjustment estimate quarterly, based on its evaluation of current and historical settlement experience with payers, industry reimbursement trends, and other relevant factors which include the monthly and quarterly review of: 1) current gross billings and receivables and reimbursement by payer, 2) current changes in third party arrangements and 3) the growth of in-network provider arrangements and managed care plans specific to our Company. During the years ended July 31, 2021, 2020 and 2019, the contractual adjustment percentages, determined using current and historical reimbursement statistics, were approximately 83%, 88% and 88%, respectively, of gross billings. Accounts Receivable Accounts receivable are reported at realizable value, net of allowances for doubtful accounts, which is estimated and recorded in the period of the related revenue. The Company’s ability to collect outstanding receivables from third-party payers is critical to its operating performance and cash flows. The primary collection risk lies with uninsured patients or patients for whom primary insurance has paid but a patient portion remains outstanding. In the case of COVID-19 diagnostic and antibody testing, collection risk for uninsured patients is minimized. Federal Reimbursement for Uninsured Patients Testing is processed by submitting a claim to the Health Resources and Services Administration COVID 19 Uninsured Program. This government program provides reimbursement to the Company for COVID-19 diagnostic and antibody testing provided to uninsured patients and requires specific information along with an attestation of attempts to obtain this information accurately in order to submit claims. The program will perform its own validation process and there is required information about the patient that the Company must provide to be considered for reimbursement. The Company also assesses the current state of its billing functions in order to identify any known collection issues and to assess the impact, if any, on the allowance estimates which involves judgment. The Company believes that the collectability of its receivables is directly linked to the quality of its billing processes, most notably, those related to obtaining the correct information in order to bill effectively for the services provided. Should circumstances change (e.g. shift in payer mix, decline in economic conditions or deterioration in aging of receivables), our estimates of net realizable value of receivables could be reduced by a material amount. The Clinical Laboratory Services segment’s net receivables are detailed by billing category and as a percent to its total net receivables. At July 31, 2021 and 2020, approximately 59% and 68% respectively, of the Company’s net accounts receivable relates to its Clinical Laboratory Services business, which operates in the New York, New Jersey and Connecticut medical communities. The following is a table of the Company’s net accounts receivable by segment. July 31, 2021 July 31, 2020 Net accounts receivable by segment Amount % Amount % Clinical Labs (by billing category) Third party payers $ 2,195 36 $ 2,455 40 Patient self-pay 2,007 33 2,044 33 Medicare 1,122 19 884 14 HMO’s 692 12 797 13 Total Clinical Labs 6,016 100 % 6,180 100 % Total Life Sciences 4,182 2,961 Total accounts receivable – net $ 10,198 $ 9,141 Inventories The Company values inventory at the lower of cost (first-in, first-out) or net realizable value. Work-in-process and finished goods inventories consist of material, labor, and manufacturing overhead. Finished goods also include high throughput machines we intend to sell to laboratory customers. Write downs of inventories to net realizable value are based on a review of inventory quantities on hand and estimated sales forecasts based on sales history and anticipated future demand. Unanticipated changes in demand could have a significant impact on the value of our inventory and require additional write downs of inventory which would impact our results of operations. Property, plant and equipment Property, plant and equipment is stated at cost, and depreciated on the straight-line basis over the estimated useful lives of the various asset classes as follows: building and building improvements: 15-30 years; laboratory machinery and equipment, office furniture and computer equipment: 3-10 years. Leasehold improvements are amortized over the term of the related leases or estimated useful lives of the assets, whichever is shorter. Goodwill and Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Intangible assets (exclusive of patents), arose primarily from acquisitions, and primarily consist of customer relationships, trademarks, licenses, and website and database content. Our intangible assets are all finite-lived and are amortized according to their estimated useful lives, which range from 4 to 15 years. Patents represent capitalized legal costs incurred in pursuing patent applications. When such applications result in an issued patent, the related capitalized costs, if any, are amortized over a ten year period or the life of the patent, whichever is shorter, using the straight-line method. The Company reviews its issued patents and pending patent applications, and if it determines to abandon a patent application or that an issued patent no longer has economic value, the unamortized balance in deferred patent costs relating to that patent is immediately expensed. Impairment testing for Goodwill and Long-Lived Assets The Company tests goodwill annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. In assessing goodwill for impairment, the Company has the option to first perform a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is not required to perform any additional tests in assessing goodwill for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it identifies the reporting units and compares the fair value of each of these reporting units to their respective carrying amount. If the carrying amount of the reporting unit is less than its fair value, no impairment exists. If the carrying amount of the reporting unit is higher than its fair value, the impairment charge is the amount by which the carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The Company performed a quantitative assessment in 2021, 2020 and 2019, and concluded there were no goodwill impairments. The Company reviews the recoverability of the carrying value of long-lived assets (including its intangible assets, all of which have finite lives) of an asset or asset group for impairment annually as of the end of the fiscal year, or more frequently if indicators of potential impairment exist. Should indicators of impairment exist, the carrying values of the assets are evaluated in relation to the operating performance and future undiscounted cash flows of an asset or asset group. The net book value of the long lived asset is adjusted to fair value if its expected future undiscounted cash flow is less than its book value. There were no long-lived asset impairments in 2021, 2020 or 2019. Should the impact of the COVID-19 pandemic be significantly worse than currently expected, it is possible that we could incur impairment charges on goodwill and other long lived assets in the future. Comprehensive income (loss) Comprehensive income (loss) consists of the Company’s consolidated net income (loss) and foreign currency translation adjustments. Foreign currency translation adjustments included in comprehensive income (loss) were not tax effected as the Company has a full valuation allowance at July 31, 2021. Accumulated other comprehensive income is a separate component of stockholders’ equity and consists of the cumulative foreign currency translation adjustments. Shipping and Handling Costs Shipping and handling costs associated with the distribution of finished goods to customers are recorded in cost of goods sold. Research and Development Research and development costs are charged to expense as incurred. Advertising All costs associated with advertising are expensed as incurred. Advertising expense, included in selling, general and administrative expense, approximated $400, $437 and $374 for the years ended July 31, 2021, 2020 and 2019, respectively. Income Taxes The Company accounts for income taxes under the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The liability method requires that any tax benefits recognized for net operating loss carry forwards and other items be reduced by a valuation allowance when it is more likely than not that the benefits may not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the liability method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At July 31, 2021, the Company believes it has appropriately accounted for any unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. Segment Reporting The Company separately reports information about each operating segment that engages in business activities from which the segment may earn revenues and incur expenses, whose separate operating results are regularly reviewed by the chief operating decision maker regarding allocation of resources and performance assessment and which exceed specific quantitative thresholds related to revenue and profit or loss. The Company’s operating activities are reported in three segments (see Note 17). Net income (loss) per share Basic net income (loss) per share represents net income (loss) divided by the weighted average number of common shares outstanding during the period. The dilutive effect of potential common shares, consisting of outstanding stock options and unvested restricted stock, is determined using the treasury stock method. For fiscal 2021 and 2019, approximately 134,000 and 125,000 respectively, of weighted average stock options were included in the calculation of diluted weighted average shares outstanding. Diluted weighted average shares outstanding for fiscal 2020 does not include the potential common shares from stock options and unvested restricted stock because to do so would have been antidilutive and as such is the same as basic weighted average shares outstanding for 2020. The number of potential common shares (“in the money options”) and unvested restricted stock excluded from the calculation of diluted weighted average shares outstanding for the year ended July 31, 2020 was 40,000. For the years ended July 31, 2021, 2020 and 2019, the effect of approximately 1,465,000, 1,904,000 and 1,324,000 respectively, of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted weighted average shares outstanding because their effect would be anti-dilutive. The following table sets forth the computation of basic and diluted net income (loss) per share for the years ended July 31: 2021 2020 2019 Net income (loss) $ 7,875 $ (28,520 ) $ 2,489 Weighted-average common shares outstanding – basic 48,191 47,696 47,351 Add: effect of dilutive stock options and restricted stock 134 — 125 Weighted-average common shares outstanding – diluted 48,325 47,696 47,476 Net (loss) income per share – basic $ 0.16 $ (0.60 ) $ 0.05 Net (loss) income per share – diluted $ 0.16 $ (0.60 ) $ 0.05 Share-Based Compensation The Company records compensation expense associated with stock options and restricted stock based upon the fair value of stock based awards as measured at the grant date. The Company determines the award values of stock options using the Black Scholes option pricing model. The expense is recognized by amortizing the fair values on a straight-line basis over the vesting period, adjusted for forfeitures when they occur. For the years ended July 31, 2021, 2020 and 2019, share-based compensation expense relating to the fair value of stock options, restricted shares and restricted stock units was approximately $907, $923 and $939, respectively (see Note 12). During the year ended July 31, 2020, the Company issued common stock as employee compensation in the amount of $10. No excess tax benefits were recognized for the year ended July 31, 2021, 2020 and 2019. The following table sets forth the amount of expense related to share-based payment arrangements included in specific line items in the accompanying statement of operations for the years ended July 31: 2021 2020 2019 Cost of clinical laboratory services $ 93 $ 46 $ — Selling, general and administrative 814 887 939 $ 907 $ 933 $ 939 As of July 31, 2021, there was $755 of total unrecognized compensation cost related to non-vested share-based payment arrangements granted under the Company’s incentive stock plans, which will be recognized over a weighted average remaining life of approximately fifteen months. Effect of New Accounting Pronouncements Recently Adopted Accounting Pronouncements On August 1, 2019, the Company adopted a new accounting standard issued by the Financial Accounting Standards Board (“FASB”) on accounting for leases using the modified retrospective method. This new accounting standard requires a lessee to recognize an asset and liability for most leases on its balance sheet. The Company elected the optional transition method that allowed for a cumulative-effect adjustment to the opening balance of retained earnings recorded on August 1, 2019 and did not restate previously reported results in the comparative periods. The Company also elected the package of practical expedients, which among other things, allowed it to carry forward its historical lease classification. As a result of adoption of the new standard, the Company recorded right-of-use assets and operating lease liabilities of approximately $24.4 million and $25.1 million, respectively as of August 1, 2019. The operating lease liability was determined based on the present value of the remaining minimum rental payments and the right-of-use asset was determined based on the value of the lease liability, adjusted for deferred rent balances of approximately $0.7 million, which were previously included in accrued expenses. There was no cumulative effect adjustment to the opening balance of accumulated deficit. Accounting for the Company’s finance leases remains substantially unchanged. The adoption of the new standard did not materially impact the Company’s consolidated results of operations or cash flows. The adoption of this new accounting standard resulted in increased qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The Company elected the package of three practical expedients. As such, the Company did not reassess whether expired or existing contracts are or contain a lease and did not need to reassess the lease classifications or reassess the initial direct costs associated with expired or existing leases. The Company did not elect the hindsight practical expedient. Further, the land easement practical expedient was not elected as the practical expedient is not applicable to the Company. The Company elected to take the practical expedient to not separate lease and non-lease components of all asset classes entered into or modified after the effective date. For further details, see Note 9. Pronouncements Issued but Not Yet Adopted In June 2016, FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses (Topic 326). This standard changes the impairment model for most financial instruments, including trade receivables, from an incurred loss method to a new forward-looking approach, based on expected losses. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. Adoption of this standard is required for our annual and interim periods beginning August 1, 2023, provided we qualify as a smaller reporting company at the end of fiscal 2022 and must be adopted using a modified retrospective transition approach. We are currently assessing the impact of the adoption of this standard on our results of operations, financial position and cash flows. In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. We reviewed all other recently issued accounting pronouncements and have concluded they are not applicable or not expected to be significant to the accounting for our operations. Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on the reported results of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Note 2 – Goodwill and intangible assets Goodwill The Company’s net carrying amount of goodwill is in the Clinical Laboratory Services segment and is $7,452 as of July 31, 2021 and 2020. Intangible assets The Company’s change in the net carrying amount of intangible assets, all in the Life Sciences Products segment is as follows: Gross Accumulated Net July 31, 2019 $ 27,238 $ (26,206 ) $ 1,032 Amortization expense — (524 ) (524 ) Foreign currency translation 448 (418 ) 30 July 31, 2020 $ 27,686 $ (27,148 ) $ 538 Amortization expense — (296 ) (296 ) Foreign currency translation 89 (87 ) 2 July 31, 2021 $ 27,775 $ (27,531 ) $ 244 Intangible assets, all finite-lived, consist of the following: July 31, 2021 July 31, 2020 Gross Accumulated Net Gross Accumulated Net Patents $ 11,027 (11,027 ) $ — $ 11,027 $ (11,014 ) $ 13 Customer relationships 12,059 (11,815 ) 244 12,003 (11,478 ) 525 Website and acquired content 1,025 (1,025 ) — 1,022 (1,022 ) — Licensed technology and other 494 (494 ) — 483 (483 ) — Trademarks 3,170 (3,170 ) — 3,151 (3,151 ) — Total $ 27,775 (27,531 ) $ 244 $ 27,686 $ (27,148 ) $ 538 At July 31, 2021, information with respect to acquired intangibles is as follows: Useful life assigned Weighted average remaining useful life Customer relationships 8-15 years Less than 1 year At July 31, 2021, the weighted average remaining useful life of intangible assets was less than one year. Estimated amortization expense related to these finite-lived intangible assets for the five succeeding fiscal years ending July 31 is as follows: 2022 $ 244 2023 — 2024 — 2025 — 2026 — Amortization expense for the years ended July 31, 2021, 2020, and 2019 was $296, $524 and $842, respectively. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jul. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 3 – Revenue Recognition Clinical Services Revenue Service revenues in the Company’s clinical services business accounted for 74%, 63% and 63% of the Company’s total revenues for fiscal years ended July 31, 2021, 2020, and 2019, respectively and are primarily comprised of a high volume of relatively low-dollar transactions. The services business, which provides clinical testing services, satisfies its performance obligation and recognizes revenues upon completion of the testing process for a specific patient and reporting to the ordering physician. The Company may also perform clinical testing services for other laboratories and will recognize revenue from those services when reported to the ordering laboratory. The Company estimates the amount of consideration it expects to receive from customer groups using the portfolio approach. These estimates of the expected consideration include the impact of contractual allowances and price concessions on our customer group portfolios consisting of healthcare insurers, government payers, client payers and patients as described below. Contracts with customers in our laboratory services business do not contain a financing component, based on the typically limited period of time between performance of services and collection of consideration. The transaction price includes variable consideration in the form of the contractual allowance and price concessions as well as the collectability of the transaction based on patient intent and ability to pay. The Company uses the expected value method in estimating the amount of the variability included in the transaction price. The following are descriptions of our laboratory services business portfolios: Third party payers and Health Maintenance Organizations (HMO’s) Reimbursements from third party payers, primarily healthcare insurers and HMO’s are based on negotiated fee-for-service schedules and on capitated payment rates. Revenues consist of amounts billed net of contractual allowances for differences between amounts billed and the estimated consideration the Company expects to receive from such payers, which considers historical collection and denial experience and the terms of the Company’s contractual arrangements. Adjustments to the allowances, based on actual receipts from the third-party payers, are recorded upon settlement. Collection of the consideration the Company expects to receive is normally a function of providing complete and correct billing information to these third party payers within the various filing deadlines, and typically occurs within 30 to 90 days of billing. Provided the Company has billed healthcare insurers accurately with complete information prior to the established filing deadline, there has historically been little to no collection risk. If there has been a delay in billing, the Company determines if the amounts in question will likely go past the filing deadline, and if so, will reserve accordingly for the billing. Third-party payers, including government programs, may decide to deny payment or recoup payments for testing that they contend was improperly billed or not medically necessary, against their coverage determinations, or for which they believe they have otherwise overpaid (including as a result of their own error), and we may be required to refund payments already received. Our revenues may be subject to adjustment as a result of these factors among others, including without limitation, differing interpretations of billing and coding guidance and changes by government agencies and payers in interpretations, requirements, and “conditions of participation” in various programs. Government Payer - Medicare Reimbursements from Medicare are based on fee-for-service schedules set by Medicare, which is funded by the government. Revenues consist of amounts billed net of contractual allowances for differences between amounts billed and the estimated consideration the Company expects to receive from Medicare, which considers historical collection and denial experience and other factors. Adjustments to the allowances, based on actual receipts from the government payers, are recorded upon settlement. Collection of consideration the Company expects to receive is normally a function of providing the complete and correct billing information within the various filing deadlines and typically occurs within 60 days of billing. Provided the Company has billed the government payer accurately with complete information prior to the established filing deadline, there has historically been little to no collection risk. If there has been a delay in billing, the Company determines if the amounts in question will likely go past the filing deadline, and, if so, it will reserve accordingly for the billing. Patient self pay Uninsured patients are billed based on established patient fee schedules or fees negotiated with physicians on behalf of their patients. Coinsurance and deductible responsibilities based on fees negotiated with healthcare insurers are also billed to insured patients and included in this portfolio. Collection of billings from patients is subject to credit risk and ability of the patients to pay. Revenues consist of amounts billed net of discounts provided to uninsured patients in accordance with the Company’s policies and implicit price concessions. Implicit price concessions represent differences between amounts billed and the estimated consideration the Company expects to receive from patients, which considers historical collection experience and other factors including current market conditions. Adjustments to the estimated allowances, based on actual receipts from the patients, are recorded upon settlement. Patient responsibility is invoiced and if it reaches 91 days outstanding, the account is sent to a collection agency for further processing. After the account has been with the collection agency for at least 105 days, and is determined to be uncollectable it is written off. The following table represents clinical services net revenues and percentages by type of customer: Year ended July 31, 2021 Year ended July 31, 2020 Year ended July 31, 2019 Revenue category Revenue % Revenue % Revenue % Third-party payers $ 52,564 60 $ 24,893 52 $ 26,653 52 Medicare 13,084 15 10,825 23 10,898 21 HMO’s 11,878 14 5,983 12 6,213 12 Patient self-pay 9,458 11 6,263 13 7,351 15 Total $ 86,984 100 % $ 47,964 100 % $ 51,115 100 % For fiscal years ended July 31, 2021, 2020, and 2019 all of the Company’s clinical services revenues were generated within the United States. Grant income Under the CARES Act, we were eligible for and received two income grants in April and June 2020 totaling $1,496 under the Department of Health and Human Services (HHS) Public Health and Social Services Emergency Fund for provider relief. The purpose of the payments is to reimburse the Company for health care related expenses or lost revenues attributable to COVID-19. We certified that the grant funds were accepted per the regulations and recognized it as Grant income for the fiscal year ended July 31, 2020 in the Clinical Services segment. Products Revenue Products revenues consist of the sale of single-use products used in the identification of genomic information and are recognized at a point in time following the transfer of control of such products to the customer, which generally occurs upon shipment. Payment terms for shipments to end-user and distributor customers may range from 30 to 90 days. Any claims for credit or return of goods may be made generally within 30 days of receipt. Revenues are reduced to reflect estimated credits and returns, although historically these adjustments have not been material. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenue. Amounts billed to customers for shipping and handling are included in revenue, while the related shipping and handling costs are reflected in cost of products. Products revenue by geography is as follows: 2021 2020 2019 United States $ 15,617 $ 14,824 $ 16,966 Europe 10,386 7,720 8,551 Asia Pacific 4,744 4,017 4,538 Products revenue $ 30,747 $ 26,561 $ 30,055 |
Supplemental Disclosure for Sta
Supplemental Disclosure for Statement of Cash Flows | 12 Months Ended |
Jul. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental disclosure for statement of cash flows | Note 4 - Supplemental disclosure for statement of cash flows In the years ended July 31, 2021, 2020, and 2019, interest paid by the Company approximated $237, $266 and $138, respectively. For the years ended July 31, 2021 and 2020, the net reductions in the measurement of right of use assets and liabilities included in cash flows from operating activities was approximately $74 and $884, respectively. The changes are included in changes in accrued liabilities, other current liabilities, and other liabilities in the statement of cash flows. For the years ended July 31, 2021, 2020 and 2019, tax on capital paid by the Company was $305, $90 and $94, respectively. During the years ended July 31, 2021, 2020 and 2019, the Company issued common stock in connection with its share-based 401(k) employer match in the amount of $780, $839 and $832, respectively. During the year ended July 31, 2021, the Company issued 332,700 restricted shares of common stock to two senior executives in settlement of their accrued bonuses totaling $875. For the year ended July 31, 2020, non-cash activities related to the adoption of the new accounting standard for leases are detailed in Note 1. During fiscal 2019, the Company entered into finance lease agreements totaling $381 and none during fiscal years 2021 or 2020. |
Inventories
Inventories | 12 Months Ended |
Jul. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 - Inventories Inventories consisted of the following at July 31: 2021 2020 Raw materials $ 1,062 $ 1,019 Work in process 2,534 2,587 Finished products 9,056 4,178 $ 12,652 $ 7,784 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jul. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, plant, and equipment | Note 6 - Property, plant, and equipment At July 31, 2021 and 2020, property, plant, and equipment consist of: 2021 2020 Building and building improvements $ 10,310 $ 10,089 Machinery and equipment (includes assets under finance leases - see Note 9) 12,721 8,548 Office furniture and computer equipment 15,942 16,578 Leasehold improvements 5,692 5,377 44,665 40,592 Accumulated depreciation and amortization (30,142 ) (28,172 ) 14,523 12,420 Land and land improvements 2,062 2,062 $ 16,585 $ 14,482 At July 31, 2021 building and building improvements include construction in progress of approximately $100. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 7 - Income taxes The benefit for income taxes for fiscal years ended July 31 is as follows: 2021 2020 2019 Federal $ — $ — $ — State and local — — — Foreign — — — Deferred benefit — — — Benefit for income taxes $ — $ — $ — During the fiscal year ended July 31, 2019, the Company finalized its computation of the impact of the Tax Cuts and Jobs Act of 2017 with no change to the benefit amount recorded in the prior year. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance allows companies to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which they are subject to the rules (the period cost method), or (ii) account for GILTI in the Company’s measurement of deferred taxes (the deferred method). After completing the analysis of the GILTI provisions, the Company elected to account for GILTI using the period cost method. On March 27, 2020, the CARES Act was signed into law. The CARES Act includes provisions relating to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. While the Company continues to evaluate the impact of the CARES Act, it does not currently believe it will have a material impact on the Company’s income taxes or related disclosures. Deferred tax assets and liabilities arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The components of deferred tax assets (liabilities) as of July 31 are as follows: 2021 2020 Deferred tax assets: Federal tax carryforward losses $ 18,140 $ 18,173 Provision for uncollectible accounts receivable 970 1,079 State and local tax carry forward losses 1,658 1,187 Accrued royalties — 101 Stock compensation 1,088 898 Depreciation 850 799 Research and development and other tax credit carryforwards 1,527 1,477 Lease liabilities 5,194 5,520 Foreign tax carryforward losses 2,536 3,357 Intangibles and goodwill 858 1,162 Inventory 1,637 1,156 Accrued expenses 1,341 1,176 Other, net 17 37 Deferred tax assets 35,816 36,122 Right of use assets (4,917 ) (5,288 Prepaid expenses (946 ) (705 ) Other, net (79 ) (52 ) Deferred tax liabilities (5,942 ) (6,045 ) Net deferred tax assets before valuation allowance 29,874 30,077 Less: valuation allowance (29,874 ) (30,077 ) Net deferred tax liabilities $ — $ — The Company recorded a valuation allowance during the years ended July 31, 2021 and 2020 equal to domestic and foreign net deferred tax assets. The Company believes that the valuation allowance is necessary as it is not more likely than not that the deferred tax assets will be realized in the foreseeable future based on positive and negative evidence available at this time. This conclusion was reached because of uncertainties relating to future taxable income, in terms of both its timing and its sufficiency, which would enable the Company to realize the deferred tax assets. For fiscal years 2021 and 2020, the change in the valuation allowance was ($200) and $6,600, respectively. As of July 31, 2021, the Company had U.S. federal net operating loss carryforwards of approximately $85,600 of which $58,500, if not fully utilized, expire between 2030 and 2038 and which $27,100 do not expire. Utilization is dependent on generating sufficient taxable income prior to expiration of the tax loss carryforwards. In addition, the Company has research and development tax credit carryforwards of approximately $1,500 which expire between 2025 and 2041. As of July 31, 2021, the Company has state and local net operating loss carryforwards of approximately $28,800, which if not fully utilized, expire between 2038 and 2041. As of July 31, 2021, the Company had foreign loss carryforwards of approximately $10,700 which with few exceptions do not expire. The geographic components of income (loss) before income taxes consisted of the following for the years ended July 31: 2021 2020 2019 United States operations $ 8,832 $ (27,690 ) $ 4,618 International operations (957 ) (830 ) (2,129 ) Income (loss) before taxes $ 7,875 $ (28,520 ) $ 2,489 The (provision) or benefit for income taxes was at rates different from U.S. federal statutory rates for the following reasons for the years ended July 31: 2021 2020 2019 Federal statutory rate (21.0 )% 21.0 % (21.0 )% Compensation and other expenses not deductible for income tax return purposes (3.4 ) (1.1 ) (15.3 ) PPP loan forgiveness income not taxable for income tax return purposes 18.7 — — Change in valuation allowance, net 5.7 (19.9 ) 33.6 Other — — 2.7 — % — % — % Because there are no undistributed earnings at the Company’s foreign subsidiaries at July 31, 2021, no U.S. federal income taxes have been provided. As of July 31, 2021, the Company has no liabilities for uncertain tax positions. It is the Company’s policy to record interest and penalties as a component of tax expense. The Company files income tax returns in the U.S. Federal jurisdiction, various U.S. state jurisdictions and several foreign jurisdictions. With few exceptions, the fiscal years that remain subject to examination are July 31, 2018 through July 31, 2021. During fiscal 2021, the Swiss Federal Tax Administration completed of an examination for the fiscal years 2015 through 2018, which resulted in the tax returns being accepted as filed. During fiscal 2021, the Company received notification from the German tax authorities of an examination for the fiscal years 2015 through 2019. As of July 31, 2021, we had received no preliminary audit findings and no reserves have been recorded with respect to this audit. |
Long Term Debt
Long Term Debt | 12 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long term debt | Note 8 – Long term debt In connection with the purchase of a building in Farmingdale, NY on November 27, 2018, a wholly-owned subsidiary (the “mortgagor subsidiary”) of the Company entered into a Fee Mortgage and Security Agreement (the “mortgage agreement”) with Citibank, N.A. (the “mortgagee”). The mortgage agreement provides for a loan of $4,500 for a term of 10 years, bears a fixed interest rate of 5.09% per annum and requires monthly mortgage payments of principal and interest of $30. Debt issuance costs of $72 are being amortized over the life of the mortgage agreement. The balance of unamortized debt issuance cost was $53 at July 31, 2021. At July 31, 2021, the balance owed by the subsidiary under the mortgage agreement was $4,100. The Company’s obligations under the mortgage agreement are secured by the building and by a $750 cash collateral deposit with the mortgagee as additional security. This restricted cash is included in other assets as of July 31, 2021. We assumed from the seller an operating lease for a tenant at the facility which expired on June 30, 2020. Rental income from the assumed lease is included in other income. The mortgage agreement includes affirmative and negative covenants and events of default, as defined. Events of default include non-payment of principal and interest on debt outstanding, non-performance of covenants, material changes in business, breach of representations, bankruptcy or insolvency, and changes in control. The mortgage includes certain financial covenants. As of July 31, 2020, the Company was not in compliance with a financial ratio covenant related to the mortgage. Effective October 19, 2020, the Company and the mortgagee agreed to a covenant restructure whereby the mortgagee waived the Company’s financial ratio covenant for the fiscal period ended July 31, 2020 and modified the mortgage to replace that covenant with a liquidity covenant. The liquidity covenant requires that we own and maintain at all times and throughout the remaining term of the loan at least $25,000 of liquid assets, defined as time deposits, money market accounts and obligations issued by the U.S. government or any of its agencies. The cash collateral agreement was also modified to require compliance with the liquidity covenant for two consecutive fiscal years before the collateral is released back to us. As of July 31, 2021, the Company was in compliance with all the financial and liquidity covenants related to this mortgage. Effective September 29, 2021 the Company and the mortgagee agreed to further covenant restructuring whereby (a) the liquidity covenant was reduced to 150% of the loan principal (or approximately $6,000 July 31, 2021) from $25,000 previously, and (b) the collateral requirement was increased from $750 to $1,000. In April 2020, our subsidiary in Switzerland received a loan of CHF 400 ($400, based on the foreign exchange rate as of July 31, 2020) from the Swiss government under the “Corona Krise” emergency loan program in response to the pandemic. This loan is uncollateralized, bears 0% interest, is due in 5 years, and may be repaid at any time. This loan is included in long term debt – net as of July 31, 2021. The CARES Act expanded the U.S. Small Business Administration’s (SBA) business loan program to create the Paycheck Protection Program (PPP), which provided employers with uncollateralized loans whose primary purpose is to retain or maintain workforce and salaries for a twenty-four week period (“covered period”) following receipt of the loan. PPP loans have a 1% fixed interest rate and are due from two to five years. The primary features of the PPP loan program are to provide funding to companies to cover eligible expenses, and the potential for forgiveness of that portion of the loan spent on payroll and other permitted operating expenses during the covered period, subject to reductions if the borrower fails to maintain or restore employee and salary levels. We applied for the PPP loan based on the eligibility and need requirements established when the program was announced and in April 2020 received $7,000 through Citibank N.A., the Company’s existing lender, pursuant to the PPP (the “PPP Loan”). The SBA has announced its intention to audit loans in excess of $2,000. To date, the SBA has not informed the Company of its intention to audit the Company’s PPP loan. We accrued no interest on the loan. In June 2021, the SBA approved in full our request for loan forgiveness. For the year ended July 31, 2021, we recognized the forgiveness of the $7,000 loan in Other income. Minimum future annual principal payments under these agreements as of July 31, 2021 are as follows: July 31, Total 2022 $ 152 2023 160 2024 167 2025 606 2026 186 Thereafter 3,290 Total principal payments 4,561 Less: current portion, included in other current liabilities and other short term debt (152 ) unamortized mortgage cost (53 ) Long term debt - net $ 4,356 |
Leases
Leases | 12 Months Ended |
Jul. 31, 2021 | |
Leases Disclosure [Abstract] | |
Leases | Note 9 - Leases The Company adopted ASU No. 2016-02 “Leases (Topic 842)”, which requires leases with durations greater than twelve months to be recognized on the balance sheet, using the modified retrospective approach with an effective date of August 1, 2019. We did not apply the new standard to comparative periods and therefore those amounts are not presented below. The Company determines if an arrangement is or contains a lease at contract inception. The Company leases buildings, office space, patient service centers, and equipment primarily through operating leases, and equipment through a limited number of finance leases. Generally, a right-of-use asset, representing the right to use the underlying asset during the lease term, and a lease liability, representing the payment obligation arising from the lease, are recognized on the balance sheet at lease commencement based on the present value of the payment obligation. For operating leases, expense is recognized on a straight-line basis over the lease term. For finance leases, interest expense on the lease liability is recognized using the effective interest method and amortization of the right-of-use asset is recognized on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company primarily uses its incremental borrowing rate in determining the present value of lease payments as the Company’s leases generally do not provide an implicit rate. The Company has lease agreements with (i) right-of-use asset payments and (ii) non-lease components (i.e. payments related to maintenance fees, utilities, etc.,) which have generally been combined and accounted for as a single lease component. The Company’s leases have remaining terms of less than 1 year to 8 years, some of which include options to extend the leases for up to 5 years. The Company’s lease terms may include renewal options that are reasonably certain to be exercised and termination options that are reasonably certain not to be exercised. Certain of the Company’s lease agreements include rental payments adjusted periodically for inflation or a market rate which are included in the lease liabilities. Leases Balance Sheet Classification July 31, July 31, Assets Operating Right-of-use assets $ 17,020 $ 19,916 Finance Property, plant and equipment, net (a) 248 385 Total lease assets $ 17,268 $ 20,301 Liabilities Current: Operating Current portion of operating lease liabilities $ 3,419 $ 4,121 Finance Finance leases short term 88 201 Non-current: Operating Operating lease liabilities, non-current 14,558 16,679 Finance Other liabilities and finance leases long term 110 161 Total lease liabilities $ 18,175 $ 21,162 (a) Accumulated amortization of finance lease assets was approximately $1,100 and $1,000 as of July 31, 2021 and 2020, respectively. For the years ended July 31, components of lease cost were as follows: Lease Cost 2021 2020 Operating lease cost $ 5,474 $ 5,813 Finance lease cost: Amortization of leased assets 137 251 Interest on lease liabilities 16 35 Total lease cost $ 5,627 $ 6,099 The maturity of the Company’s lease liabilities as of July 31, 2021 is as follows: Maturity of lease liabilities, years ending July 31, Operating Finance Total 2022 $ 4,326 $ 88 $ 4,414 2023 3,547 88 3,635 2024 3,385 37 3,422 2025 3,158 — 3,158 2026 3,150 — 3,150 Thereafter 3,224 — 3,224 Total lease payments 20,790 213 21,003 Less: Interest (a) (2,813 ) (15 ) (2,828 ) Present value of lease liabilities $ 17,977 $ 198 $ 18,175 (a) Primarily calculated using the Company’s incremental borrowing rate. Lease term and discount rate for the years ended July 31 were as follows: Lease term and discount rate 2021 2020 Weighted-average remaining lease term (years): Operating leases 5.6 years 6.2 years Finance leases 2.5 years 2.7 years Weighted-average discount rate: Operating leases 4.9 % 4.9 % Finance leases 7.4 % 8.6 % See Note 4 for cash flow information on cash paid for amounts included in the measurement of lease liabilities for the years ended July 31, 2021 and 2020. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Jul. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Note 10 - Accrued Liabilities At July 31, accrued liabilities consist of: 2021 2020 Payroll, benefits and commissions $ 5,856 $ 5,227 Professional fees 628 710 Legal 2,554 2,647 Deferred revenue 2,675 2,526 Other 2,588 1,723 $ 14,301 $ 12,833 Deferred revenue In order to increase cash flow to providers of services and suppliers impacted by the pandemic, the Centers for Medicare and Medicaid Services (CMS) expanded its Accelerated and Advance Payment Program to a broader group of Medicare providers. We applied for and received a $2,526 payment advance from this program in April 2020. The recoupment by CMS of our advance payment had been scheduled to begin 120 days after the date of receipt, at which time every claim we submit from that point would be automatically offset to repay the advance payment. Any unrecouped advance balance remaining after 90 days of the recoupment process was to be repaid such that 210 days after receiving the advance it would be entirely repaid. In October 2020, the Continuing Appropriations Act, 2021 and Other Extensions Act amended the repayment terms of the Advance Payment Program. The recoupment period was extended and the automatic recoupment began one year after the date the advance payment was received, which in our case meant recoupment started April 2021. Additionally, during the first 11 months after recoupment begins, the rate will be 25% and repayment will occur through an automatic recoupment of our Medicare payments. At the end of the 11 month period, the recoupment rate will increase. If the total amount of the advance payment is not recovered within 29 months from the date the advance was received, a demand letter for the outstanding balance will be issued. Since the Company has the right to repay the advance at any time, the entire balance is considered current. As of July 31, 2021, the deferred revenue related to the CMS payment advance was $1,847. Self-Insured Medical Plan The Company self-funds medical insurance coverage for certain of its U.S. based employees. The risk to the Company is believed to be limited through the use of individual and aggregate stop loss insurance. As of July 31, 2021 and 2020, the Company has established a reserve of $300, which is included in accrued liabilities for payroll, benefits and commissions, for claims that have been reported but not paid and for claims that have been incurred but not reported. The reserve is based upon the Company’s historical payment trends, claim history and current estimates. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Jul. 31, 2021 | |
Other Current Liabilities [Abstract] | |
Other current liabilities | Note 11 - Other current liabilities At July 31, other current liabilities consist of: 2021 2020 Finance lease obligations, current portion $ 81 $ 255 Current portion of mortgage loan 152 136 $ 233 $ 391 |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Jul. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ equity | Note 12 - Stockholders’ equity Controlled Equity Offering The Company has a Controlled Equity Offering SM On September 1, 2017, the Company filed with the SEC a Form S-3 “shelf” registration and sales agreement prospectus covering the offering, issuance and sale of our Common Stock that may be issued and sold under the existing Sales Agreement in an aggregate amount of up to $19.2 million. A total of $150 million of securities may be sold under this shelf registration, which was declared effective September 15, 2017. The Form S-3 expired in October 2020 but may be refiled at any time at the discretion of the Company. For the years ended July 31, 2021, 2020, and 2019 the Company did not sell any shares of common stock under the Sales Agreement. Common stock In fiscal 2021, the Company issued 208,537 shares of common stock in settlement of its employees’ 401(k) matching contribution obligation of $780. In January 2021, the Company issued 332,700 shares of common stock in payment of accrued executive bonuses of $875. In fiscal 2020, the Company issued 333,265 shares of common stock in settlement of its employees’ 401(k) matching contribution obligation of $839. The Company also issued 4,167 shares of common stock as employee compensation and recorded an expense of $10. In fiscal 2019, the Company issued 315,472 shares of common stock in settlement of its employees’ 401(k) matching contribution obligation of $832. Incentive stock plans In January 2011, the Company’s stockholders approved the adoption of the 2011 Incentive Plan (the “2011 Plan”) for the issuance of equity awards, including, among others, options, restricted stock, restricted stock units and performance stock units for up to 3,000,000 shares of common stock. On January 5, 2018, the Company’s stockholders approved the amendment and restatement of the 2011 Plan (the “Amended and Restated 2011 Plan”) to increase the number of shares of common stock available for grant under the 2011 Plan by 2,000,000 shares of common stock bringing the total number of shares available for grant to 5,000,000 shares of common stock. On October 7, 2020, the Company’s Board of Directors approved the amendment and restatement of the Amended and Restated 2011 Plan, with an effective date of October 7, 2020 and subject to approval by the Company’s stockholders at the 2020 annual meeting of stockholders of the Company. The amendment and restatement of the Amended and Restated 2011 Plan was for purposes of, among other things, (i) increasing the shares of common stock available for grant under the Amended and Restated 2011 Plan by an additional 4,000,000 shares of common stock bringing the total number of shares available for grant to 9,000,000 shares of common stock and (ii) extending the term of the Amended and Restated 2011 Plan until October 7, 2030. In January 2021, the Company’s stockholders approved the amendment and restatement of the Amended and Restated 2011 Plan. The exercise price of options granted under the Amended and Restated 2011 Plan, as amended and restated, is equal to or greater than fair market value of the common stock on the date of grant. The Amended and Restated 2011 Plan, as amended and restated, will terminate at the earliest of (a) such time as no shares of common stock remain available for issuance under the plan, (b) termination of the plan by the Company’s Board of Directors, or (c) October 7, 2030. Awards outstanding upon expiration of the Amended and Restated 2011 Plan, as amended and restated, will remain in effect until they have been exercised or terminated, or have expired. As of July 31, 2021, there were approximately 5,066,000 shares of common stock available for grant under the Amended and Restated 2011 Plan, as amended and restated. The Company estimates the fair value of each stock option award on the measurement date using a Black-Scholes option pricing model. The fair value of awards is amortized to expense on a straight-line basis over the requisite service period. The Company expenses restricted stock awards based on vesting requirements, primarily time elapsed. Options granted pursuant to the plans may be either incentive stock options or non-statutory options. The 2011 Plan provides for the issuance of stock options, restricted stock and restricted stock unit awards which generally vest over a two to four year period. A summary of the option activity pursuant to the Company’s stock option plans for the years ended July 31, 2021, 2020, and 2019 is as follows: 2021 2020 2019 Options Weighted - Options Weighted - Options Weighted - Outstanding at beginning of year 2,636,496 $ 4.05 2,351,040 $ 4.53 1,882,116 $ 4.96 New Grants 543,104 $ 2.57 773,032 $ 2.40 715,321 $ 2.81 Exercised (34,667 ) $ 2.80 — $ — (238,230 ) $ 2.69 Expired or forfeited (640,370 ) $ 3.52 (487,576 ) $ 3.71 (8,167 ) $ 6.55 Outstanding at end of year 2,504,563 $ 3.74 2,636,496 $ 4.05 2,351,040 $ 4.53 Exercisable at end of year 1,561,326 $ 4.37 1,457,162 $ 5.10 1,342,564 $ 5.16 Weighted average fair value of options granted during year $ 1.27 $ 1.01 $ 1.07 The intrinsic value of stock option awards that vested during the fiscal year represents the value of the Company’s closing stock price on the last trading day of the fiscal year in excess of the exercise price multiplied by the number of options that vested. Total intrinsic value of outstanding options that vested and were exercisable during the fiscal years ended July 31, 2021, 2020, and 2019 was $488, $0 and $159, respectively. The intrinsic value of options outstanding at July 31, 2021, 2020, and 2019 was $1,323, $79 and $955, respectively. The intrinsic value of the options exercised in fiscal 2021, 2020 and 2019 was $38, $0 and $117, respectively. During the fiscal year ended July 31, 2019 certain directors and officers of the Company exercised 203,511 stock options in non-cash transactions. The officers and directors received 23,376 net shares of common stock. The Company did not receive any proceeds from this exercise. The net shares issued represent the difference between the fair market value of the options on the date of exercise less the strike price cost to exercise the options. Listed below are the assumptions used to determine the fair value of options granted during fiscal years 2021, 2020 and 2019: Grant Year Options Granted Exercise Price Range Term Vesting Period (years) FMV of options Granted/Per Share Expected Life (years) Expected Volatility % Interest Vested Shares at 7/31/2021 2021 543,104 $ 2.14 - $2.63 5 2 - 3 $ 1.04 - $1.30 3.25 – 3.5 69.36 – 73.26 0.19 – 0.26 — 2020 773,032 $ 2.20 - $3.32 5 2 - 3 $ 0.86 - $1.34 3.25 – 3.5 53.77 – 66.24 0.27 – 1.2 271,066 2019 715,321 $ 2.80 - $3.21 5 2 - 3 $ 1.06 – $1.23 3.25 - 3.5 48.06 - 50.56 2.47- 2.96 525,547 The following table summarizes information for stock options outstanding at July 31, 2021: Range of Exercise prices Shares Weighted- Weighted- $ 2.14 - $3.32 1,748,017 3.5 $ 2.57 $ 4.35 - $4.42 255,000 2.0 $ 4.42 $ 5.52 - $8.36 501,546 0.7 $ 7.15 2,504,563 The following table summarizes information for stock options exercisable at July 31, 2021: Range of Exercise prices Shares Weighted- Weighted- $ 2.20 - $3.32 819,947 2.8 $ 2.66 $ 4.35 - $4.42 238,333 2.0 $ 4.42 $ 5.52 - $8.36 503,046 0.7 $ 7.15 1,561,326 Performance Stock Units To better align the long-term interest of executives with growing U.S. practices, beginning in fiscal 2018, the Company granted long-term incentive awards in the form of time based stock options and performance-based restricted stock units (“Performance Stock Units” or “PSUs”). The PSUs earned will be determined over a three-year performance period. The primary performance metrics will be revenue and Adjusted EBITDA growth. Payouts based on revenue and adjusted EBITDA goals will be modified based on Total Shareholder Return (“TSR”) performance relative to Enzo’s peer group. During the fiscal years ended July 31, 2020, 2019 and 2018, the Company awarded PSUs to its executive officers. These awards provide for the grant of shares of our common stock at the end of a three–year period based on the achievement of average revenue growth and adjusted EBITDA growth over that period. During the fiscal year 2020, a former executive forfeited 4,000 and 10,500 PSUs from the fiscal 2019 and fiscal 2020 awards, respectively. During fiscal year 2021, a former executive forfeited 2,000 and 4,000 PSUs from the fiscal 2018 and fiscal 2019 awards, respectively. During fiscal year 2021, 26,000 remaining PSU’s awarded in fiscal 2018 to current executives with a grant date of July 31, 2018 expired as the growth goals were not achieved by July 31, 2021. During the fiscal year 2021, the Company accrued compensation expense of $272 for the outstanding PSUs awarded during fiscal years 2020 and 2019 as the achievement of certain growth goals is deemed probable. The following table summarizes PSU’s granted and outstanding through July 31, 2021: Grant Date Total Grant Forfeitures Outstanding Fair Market Value 1/3/2019 80,500 (14,500 ) 66,000 $ 222 2/25/2020 98,600 — 98,600 $ 207 Restricted Stock Awards The fair value of a restricted stock award is determined based on the closing stock price on the award date. There were no awards made during the fiscal years ended July 31, 2021, 2020 or 2019. During the fiscal year ended July 31, 2021, a total of 817 restricted stock awards vested. The fair value of the awards that vested during the years ended July 31, 2021, 2020 and 2019 was $2, $2 and $4. As of July 31, 2021, there were no shares of unvested restricted stock outstanding. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jul. 31, 2021 | |
Employee Benefit Plans [Abstract] | |
Employee benefit plans | Note 13 - Employee benefit plans The Company has a qualified Salary Reduction Profit Sharing Plan (the “Plan”) for eligible U.S. employees under Section 401(k) of the Internal Revenue Code. The Plan provides for voluntary employee contributions through salary reduction and voluntary employer contributions at the discretion of the Company. For the years ended July 31, 2021, 2020, and 2019, the Company authorized employer matched contributions of 50% of the employees’ contribution up to 10% of the employees’ compensation, payable in Enzo Biochem, Inc. common stock. The share-based 401(k) employer matched contribution was approximately $780, $839 and $832 in fiscal years 2021, 2020, and 2019, respectively. As of July 31, 2021, 2020 and 2019 the Company accrued a total of $433, $481 and $475, respectively in 401(k) matching contribution obligations within the Accrued liabilities account. The Company’s Swiss operations provide a pension plan named the Enzo Life Sciences (ELS) AG Vertrag - Nr. 2/401144, (the “Swiss Plan”) under the Swiss government’s social security system for Swiss employees. The current required minimum saving contribution is 13% for employees over age 25 and minimum annual investment return is 1.00%. Employees are required to contribute based on a formula and the Company’s Swiss operations make contributions of at least 40% of the employee contribution. The status of the Swiss Plan, which is substantially funded as of December 31, 2020, the latest plan year end, is as follows: As of December 31, 2020 2019 2018 Total Assets $ 2,721 $ 2,181 $ 2,064 Accumulated Benefit Obligation $ 2,890 $ 2,401 $ 2,308 Funded status 94 % 91 % 90 % Fiscal Year ended July 31, 2020 2019 2018 Employer contributions $ 143 $ 165 $ 208 The contract for the Swiss Plan automatically renews on its annual anniversary unless notice of termination is provided three months prior. The current contract will automatically renew on December 31, 2021. Currently the Company has no plans to change the current funding or plan design. No events have occurred that would impact the Swiss Plan status. |
Other income
Other income | 12 Months Ended |
Jul. 31, 2021 | |
Component of Operating Income [Abstract] | |
Other income | Note 14 - Other income The CARES Act expanded the U.S. Small Business Administration’s (SBA) business loan program to create the Paycheck Protection Program (PPP), which provided employers with uncollateralized loans whose primary purpose is to retain or maintain workforce and salaries. We applied for the PPP loan based on the eligibility and need requirements established when the program was announced and in April 2020 received $7,000 through Citibank N.A., the Company’s existing lender, pursuant to the PPP (the “PPP Loan”). We accrued no interest on the loan. In June 2021, the SBA approved in full our request for loan forgiveness. For the year ended July 31, 2021, we recognized the forgiveness of the $7,000 loan in Other income. |
Commitments
Commitments | 12 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 15 - Commitments Leases An entity owned by certain executive officers/directors of the Company owns the building that the Company leases as its main facility for clinical laboratory operations and certain research operations. In addition to the minimum annual rentals of space, the lease is subject to annual increases, based on the consumer price index. Annual increases are limited to 3% per year. Rent expense for this lease, inclusive of real estate taxes, approximated $1,815, $1,833 and $1,849 during fiscal years 2021, 2020 and 2019, respectively. Employment Agreements The Company has employment agreements with certain officers that are cancellable at any time but provide for severance pay in the event an officer is terminated by the Company without cause, as defined in the agreements. Unless cancelled earlier or with notice as defined, the agreements automatically renew for two years. The current agreements expire January 2023. As of July 31, 2021, aggregate minimum compensation commitments under these agreements, exclusive of termination and change in control provisions, is $2,306. |
Contingencies
Contingencies | 12 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 16 – Contingencies The Company has brought cases in the United States District Court for the District of Delaware (“the Court”), alleging patent infringement against various companies. In 2017, the Court ruled that the asserted claims of the ’180 and ’405 Patents are invalid for nonenablement in cases involving Abbott, Becton Dickinson, Gen-Probe, Hologic, and Roche. That ruling was affirmed by the United States Court of Appeals for the Federal Circuit (“Federal Circuit”) in June 2019. Enzo subsequently filed a petition for certiorari regarding the invalidity ruling for the ’180 and ’405 Patents in February 2020; the Supreme Court denied Enzo’s petition on March 30, 2020. There are currently two cases that were originally brought by the Company in the Court. In those two cases, Enzo alleges patent infringement against Becton Dickinson Defendants and Roche Defendants, respectively. The claims in those cases involve the ’197 Patent. Both cases are stayed. In separate inter partes review proceedings before the U.S. Patent and Trademark Office (PTO) involving, among others, Becton Dickinson, certain claims of the ’197 Patent were found unpatentable as anticipated or obvious and cancelled by the Patent Trial and Appeals Board (“Board”). Enzo appealed that decision to the Federal Circuit. On August 16, 2019, the Federal Circuit affirmed the Board’s decision, finding that each of the challenged claims is unpatentable. The Company filed a petition for rehearing and rehearing en banc on October 30, 2019, which the Federal Circuit denied on December 4, 2019. The Company filed a petition for certiorari with the Supreme Court on March 3, 2020, which was denied. In April 2019, the Company entered into an agreement with Hologic and Grifols, resolving litigation resulting from four cases originally brought by the Company in the Court. As a result, Enzo dismissed (1) a stayed patent litigation regarding the ’180 and ’197 Patent against Hologic in the Court; (2) the Consolidated Appeals against Gen-Probe and Hologic resulting from two cases filed in the Court, and (3) the Company’s appeal in the litigation involving the ’581 Patent that involved both Hologic and Grifols. As a result of the agreement with Hologic, Hologic withdrew from Enzo’s Federal Circuit appeal of the Board’s adverse rulings in the inter partes On September 2, 2021, the PTO issued a non-final office action in an ex parte reexamination concerning the ’197 Patent. In the office action, the PTO rejected certain claims of the ’197 Patent under 35 U.S.C. § 102 and for nonstatutory double-patenting. Enzo’s response to the office action is forthcoming. On February 5, 2020, Harbert Discovery Fund, LP and Harbert Discovery Co-Investment Fund I, LP (“Plaintiffs”) brought an action in the United States District Court for the Southern District of New York against the Company and five of its present or former Directors, Dr. Elazar Rabbani, Barry W. Weiner, Dr. Bruce A. Hanna, Dov Perlysky and Rebecca Fischer. On March 26, 2020, Plaintiffs filed an amended complaint against the same defendants. Count I asserted the Company violated Section 14(a) of the Securities and Exchange Act of 1934 and Rule 14a-9 thereunder by disseminating proxy materials that made two purportedly false statements: (a) a “January 28, 2020 Enzo press release [that purportedly] falsely stated that the Annual Meeting would be ‘delayed’ by action of the Board to February 25, 2020 when, in fact, the Annual Meeting would convene as planned on January 31, 2020”, and (b) a “January 31 Enzo Proxy [that purportedly] falsely stated that the Proposed By-Law Amendment [to Article II, Section 9] would be approved if it received…a majority of the votes….rather than the required Supermajority Vote as provided for in the Charter. “Count II asserted a claim against the individual defendants under Section 20(a) of the Exchange Act premised on Enzo’s purported violation of Section 14(a) and Rule 14a-9. Count III asserted the individual defendants breached their fiduciary duty, based on the same conduct and by seeking to entrench themselves. Finally, Count IV purported to assert a derivative claim for a declaration that any amendment to Article II, Section 2 requires the approval of 80% of Enzo’s shareholders. On July 16, 2020, the day before the defendants’ motion to dismiss was due, plaintiffs asked the Court to dismiss their claims without prejudice. Defendants asked plaintiffs to dismiss the claims with prejudice, but they refused. On July 17, 2020, the Court dismissed the claims without prejudice. If plaintiffs reassert the claims, defendants intend to vigorously defend against them. On November 27, 2020, the Company brought an action in the United States District Court for the Southern District of New York against Harbert Discovery Fund, LP, Harbert Discovery Co-Investment Fund I, LP, Harbert Fund Advisors, Inc., Harbert Management Corp. and Kenan Lucas. The Company alleges the defendants made false and misleading representations, or omitted to state material facts necessary to make their statements not misleading, in proxy materials they disseminated seeking the election to the Company’s Board of Directors at its 2019 Annual Meeting of two candidates they nominated, in violation of Section 14(a) of the 1934 Exchange Act and Rule 14a-9 thereunder. The Company seeks damages and injunctive relief. On February 15, 2021, Defendants filed a motion to dismiss. On March 8, 2021, the Company filed its opposition to that motion. On March 18, 2021 defendants filed their reply in further support of the motion. On September 28, 2021, the Court denied the motion with respect to the Company’s misrepresentation claims and granted it with respect to its omissions claim. The Company intends to vigorously pursue its misrepresentation claim. There can be no assurance that the Company will be successful in any of these litigations. Even if the Company is not successful, management does not believe that there will be a significant adverse monetary impact on the Company. The Company is party to other claims, legal actions, complaints, and contractual disputes that arise in the ordinary course of business. The Company believes that any liability that may ultimately result from the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on its financial position or results of operations. As described in Note 3, third-party payers, including government programs, may decide to deny payment or recoup payments for testing that they contend was improperly billed or not medically necessary, against their coverage determinations, or for which they believe they have otherwise overpaid (including as a result of their own error), and we may be required to refund payments already received. During the third fiscal quarter of 2019, a significant third-party payer informed us outside of their typical business practice that they believe it overpaid the Company during certain periods of fiscal 2018. The Company disputed these claims and formally sent legal appeal letters to the payer. During the fiscal 2020 period, we recorded $0.8 million in legal and related expenses as a result of reduced reimbursements this payer made to us. In April 2020, we and the payer entered into a settlement agreement and release whereby the parties agreed that the $0.8 million previously withheld by the payer shall fully and completely satisfy the dispute. The following legal settlements are included in the statement of operations under Legal settlements, net within the Life Science segment for the 2019 period: The Company, along with its subsidiaries Enzo Life Sciences, Inc. entered into a Settlement Agreement as of February 5, 2019 (the “Agreement) with Roche Diagnostics GmbH and Roche Molecular Systems, Inc. (together, “Roche”) with respect to an action between the Company and Roche before the U.S. District Court, Southern District of New York, Case No 04-CV4046. Roche agreed to pay the Company $21 million in settlement pursuant to the Agreement. The Company received $19.4 million net of attorney contingency payments. This settlement does not affect the Company’s civil action for patent infringement against Roche in the U.S. District Court for the District of Delaware, Enzo Life Sciences Inc. v. Roche Molecular Systems Inc., et al., civil action No. 12 cv-00106, which remains stayed. The Company, along with its subsidiaries Enzo Life Sciences, Inc. entered into a settlement and license agreement as of April 16, 2019 (the “Agreement”) with Hologic, Inc. (“Hologic”), Grifols, S.A., and Grifols Diagnostic Solutions Inc. (together, “Grifols”) to settle all outstanding patent disputes among the parties. The terms of the agreement include one-time payments totaling $14 million to the Company in exchange for fully paid-up, worldwide licenses to Hologic and Grifols. The Company received $9.5 million net of attorney contingency payments. |
Segment reporting
Segment reporting | 12 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment reporting | Note 17 - 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 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: Year ended July 31, 2021 Clinical Life Therapeutics Other Consolidated Revenues $ 86,984 $ 30,747 $ — $ — $ 117,731 Operating costs and expenses: Cost of revenues 48,179 15,975 — — 64,154 Research and development 615 2,559 78 — 3,252 Selling, general and administrative 26,028 11,015 62 7,800 44,905 Legal and related expenses 264 25 — 4,439 4,728 Total operating costs and expenses 75,086 29,574 140 12,239 117,039 Operating income (loss) 11,898 1,173 (140 ) (12,239 ) 692 Other income (expense) Interest (17 ) 37 — (12 ) 8 Other (18 ) 7 — 6,916 6,905 Foreign exchange gain — 270 — — 270 Income (loss) before taxes $ 11,863 $ 1,487 $ (140 ) $ (5,335 ) $ 7,875 Depreciation and amortization included above $ 1,609 $ 756 $ — $ 288 $ 2,653 Share-based compensation included in above: Selling, general and administrative 33 102 — $ 679 814 Cost of sales 93 — — — 93 Total $ 126 $ 102 $ — $ 679 $ 907 Capital expenditures $ 3,352 $ 752 $ — $ 332 $ 4,436 Year ended July 31, 2020 Clinical Life Therapeutics Other Consolidated Revenues – Services and Products $ 47,964 $ 26,561 — — $ 74,525 Grant income 1,496 — — — 1,496 Total 49,460 26,561 — — 76,021 Operating costs and expenses:: Cost of revenues 38,855 13,396 — — 52,251 Research and development 1,509 2,190 $ 749 — 4,448 Selling, general and administrative 23,533 10,485 — $ 8,942 42,960 Legal and related expenses 211 2 — 6,516 6,729 Total operating costs and expenses 64,108 26,073 749 15,458 106,388 Operating (loss) income (14,648 ) 488 (749 ) (15,458 ) (30,367 ) Other income (expense) Interest (36 ) 56 — 434 454 Other 45 13 — 430 488 Foreign exchange gain — 905 — — 905 (Loss) income before taxes $ (14,639 ) $ 1,462 $ (749 ) $ (14,594 ) $ (28,520 ) Depreciation and amortization included above $ 1,553 $ 964 — $ 263 $ 2,780 Share-based compensation included above: Selling, general and administrative 57 74 — 756 887 Cost of sales 46 — — — 46 Total $ 103 $ 74 — $ 756 $ 933 Capital expenditures $ 1,811 $ 322 — $ 37 $ 2,170 The following financial information represents the operating results of the reportable segments of the Company: Year ended July 31, 2019 Clinical Life 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 and related expenses 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 Geographic financial information is as follows: Net Services, Products and Grant revenues from unaffiliated customers, Year ended July 31,: 2021 2020 2019 United States $ 102,602 $ 64,284 $ 68,081 Europe 10,386 7,720 8,551 Asia Pacific 4,744 4,017 4,538 Total $ 117,731 $ 76,021 $ 81,170 Long-lived assets, at July 31, 2021 2020 United States $ 41,249 $ 41,946 Europe 52 442 Total $ 41,301 $ 42,388 The Company’s reportable segments are determined based on the services they perform and the products they sell, 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. The following is a summary of the Life Sciences Products segment product revenues attributable to customers located in the United States and foreign countries for the years ended July 31,: 2021 2020 2019 United States $ 15,617 $ 14,824 $ 16,966 Foreign countries 15,130 11,737 13,089 $ 30,747 $ 26,561 $ 30,055 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Jul. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Year ended Description Balance at Charged Charged Deductions Balance at 2021 Allowance for doubtful accounts receivable 194 5 $ 19 (1) 180 2020 Allowance for doubtful accounts receivable $ 166 $ 28 — $ 194 2019 Allowance for doubtful accounts receivable 145 42 $ 21 (1) 166 2021 Deferred tax valuation allowance $ 30,077 $ (203 ) — $ 29,874 2020 Deferred tax valuation allowance 23,527 6,550 — 30,077 2019 Deferred tax valuation allowance 24,471 (944 ) — 23,527 (1) Write-off of uncollectible accounts receivable. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of business | Nature of business Enzo Biochem, Inc. (the “Company”) is an integrated diagnostics, clinical lab, and life sciences company engaged in research, development, manufacturing and marketing of diagnostic and research products based on genetic engineering, biotechnology and molecular biology. These products are designed for the diagnosis of and/or screening for infectious diseases, cancers, genetic defects and other medically pertinent diagnostic information and are distributed in the United States and internationally. The Company is conducting research and development activities in the development of therapeutic products based on the Company’s technology platform of genetic modulation and immune modulation. The Company also operates a clinical laboratory that offers and provides molecular and esoteric diagnostic medical testing services in the New York, New Jersey, and Connecticut medical communities. The Company operates in three segments (see Note 17). |
Impact of COVID-19 pandemic | Impact of COVID-19 pandemic While the rate of transmission of COVID-19 fluctuates in the US and Europe, it continues to spread in other parts of the world and negatively impact the world economy. Federal, state and local governmental policies and initiatives designed to reduce the transmission of COVID-19 have resulted in, among other things, a significant reduction in physician office visits, the cancellation of elective medical procedures, customers of our products remaining closed or continuing to severely curtail their operations (voluntarily or in response to government orders), and the continuation of work-from-home or shelter-in-place policies. The COVID-19 impact on the Company’s operations is consistent with the overall industry and publicly issued statements from competitors, partners, and vendors. During the fiscal year ended July 31, 2021, the Company generated substantial increases in COVID-19 related products and services. Enzo applied its technical expertise in molecular diagnostics to develop next generation COVID-19 diagnostic and antibody testing options which were approved under the FDA Emergency Use Authorization (EUA). This testing had a positive impact on revenue, profitability and cash flow throughout fiscal 2021. Revenues from COVID-19 testing represented 48% and 8% of Clinical revenues in the 2021 and 2020 periods, respectively. However, it is too early to determine the long term significance of any positive impact from increased COVID-19 testing and our proprietary COVID-19 product offerings on our businesses. The extent to which our businesses may continue to be affected by the COVID-19 pandemic will largely depend on both current and future developments, including its duration, the emergence and spread of variants, its treatment with authorized vaccines and vaccines in various stages of development and federal approval, work and travel advisories and restrictions, and the timing of their easing, all of which are highly uncertain and cannot be reasonably predicted at this time. Global supply chain issues due to the pandemic continue to hamper both the manufacturing of products within the life science segment as well as testing capabilities in the clinical laboratory. The extent to which the COVID-19 pandemic impacts the Company’s business and consolidated results of operations, financial position and cash flows will depend on numerous evolving factors including, but not limited to: the magnitude and duration of the COVID-19 pandemic, the extent to which it will impact worldwide macroeconomic conditions including, but not limited to, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. These factors are beyond the Company’s knowledge and control, and as a result, at this time the Company cannot reasonably estimate the adverse impact the COVID-19 pandemic will have on its businesses but the adverse impact could be material. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of July 31, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s patient self-pay revenue concessions and credit losses in the Clinical Services segment, accounts receivable, inventories and the carrying value of goodwill and other long-lived assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in additional material impacts to the Company’s consolidated financial statements in future reporting periods. We expect COVID-19 volume to decline in the quarters ahead as the percentage of Americans who are vaccinated increases. However, the emergence and spread of variants may cause our COVID-19 testing volume to increase again. Even after the COVID-19 pandemic has moderated and the business and social distancing restrictions have eased, we may continue to experience similar adverse effects to our businesses, consolidated results of operations, financial position and cash flows resulting from a recessionary economic environment that may persist. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was passed in March 2020 and addressed the various economic impacts of, and otherwise responds to, the COVID-19 outbreak. Under the CARES Act, we received a loan, an advance payment, and two income grants from Medicare during the latter half of our fiscal year ended July 31, 2020, all of which are further described in Note 3, Note 8 and Note 10. |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries, Enzo Clinical Labs, Inc., Enzo Life Sciences, Inc. (and its wholly-owned foreign subsidiaries), Enzo Therapeutics, Inc., Enzo Realty LLC (“Realty”) and Enzo Realty II, LLC (“Realty II”). All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Contingencies | Contingencies Contingencies are evaluated and a liability is recorded when the matter is both probable and reasonably estimable. Gain contingencies are evaluated and not recognized until the gain is realizable or realized. |
Foreign Currency Translation/Transactions | Foreign Currency Translation/Transactions The Company has determined that the functional currency for its foreign subsidiaries is the local currency. For financial reporting purposes, assets and liabilities denominated in foreign currencies are translated at current exchange rates and profit and loss accounts are translated at weighted average exchange rates. Resulting translation gains and losses are included as a separate component of stockholders’ equity as accumulated other comprehensive income or loss. Gains or losses resulting from transactions entered into in other than the functional currency are recorded as foreign exchange gains and losses in the consolidated statements of operations. |
Fair Value Measurements | Fair Value Measurements The Company determines fair value measurements used in its consolidated financial statements based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy. The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3 Valuations derived from valuation techniques in which one or more significant inputs are unobservable. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of demand deposits with banks and highly liquid money market funds. At July 31, 2021 and 2020, the Company had cash and cash equivalents in foreign bank accounts of $909. |
Marketable securities | Marketable securities The Company limits its credit risk associated with investments by investing in a mutual fund and an exchange traded fund (ETF) which hold highly rated corporate bonds, asset backed securities, municipal bonds, mortgage obligations and government obligations. These investments are classified as trading securities and are Level 1 fair value investments. As of July 31, 2021, the fair value of these investments was $29,978 and the cost basis was $30,061. We recognized unrealized losses of $83 for the fiscal year ended July 31, 2021. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents and accounts receivable. The Company believes the fair value of the aforementioned financial instruments approximates the cost due to the immediate or short-term nature of these items. Concentration of credit risk with respect to the Company’s Life Sciences products segment is mitigated by the diversity of the Company’s customers and their dispersion across many different geographic regions. To reduce risk, the Company routinely assesses the financial strength of these customers and, consequently, believes that its accounts receivable credit exposure with respect to these customers is limited. The Company believes that the concentration of credit risk with respect to the Clinical Laboratory services accounts receivable is mitigated by the diversity of third party payers that insure individuals. To reduce risk, the Company routinely assesses the financial strength of these payers and, consequently, believes that its accounts receivable credit risk exposure, with respect to these payers, is limited. While the Company also has receivables due from the Federal Medicare program, the Company does not believe that these receivables represent a credit risk since the Medicare program is funded by the federal government and payment is primarily dependent on our submitting the appropriate documentation. Other than the Medicare program, two providers whose programs are included in the “Third party payers” and health maintenance organizations (“HMOs”) categories represent 35% of Clinical Services net revenue for the year ended July 31, 2021 and represent 27% of the Clinical Services net accounts receivable as of July 31, 2021. Other than the Medicare program, one provider whose programs are included in the “Third-party payers” and “Health Maintenance Organizations” (“HMO’s”) categories represents 24% and 36% of Clinical Services net revenue for the years ended July 31, 2020 and 2019 respectively, and represents 16% of the Clinical Services net accounts receivable as of July 31, 2020. |
Accrual for Self-Funded Employee Medical Insurance | Accrual for Self-Funded Employee Medical Insurance Accruals for self-funded employee medical insurance are determined based on a number of assumptions and factors, including historical payment trends, claims history and current estimates. These estimated liabilities are not discounted. If actual trends differ from these estimates, the financial results could be impacted. |
Contractual Adjustment | Contractual Adjustment The Company’s estimate of contractual adjustment is based on significant assumptions and judgments, such as its interpretation of payer reimbursement policies, and bears the risk of change. The estimation process is based on the experience of amounts approved as reimbursable and ultimately settled by payers, versus the corresponding gross amount billed to the respective payers. The contractual adjustment is an estimate that reduces gross revenue based on gross billing rates to amounts expected to be approved and reimbursed. Gross billings are based on a standard fee schedule the Company sets for all third-party payers, including Medicare, HMO’s and managed care providers. The Company adjusts the contractual adjustment estimate quarterly, based on its evaluation of current and historical settlement experience with payers, industry reimbursement trends, and other relevant factors which include the monthly and quarterly review of: 1) current gross billings and receivables and reimbursement by payer, 2) current changes in third party arrangements and 3) the growth of in-network provider arrangements and managed care plans specific to our Company. During the years ended July 31, 2021, 2020 and 2019, the contractual adjustment percentages, determined using current and historical reimbursement statistics, were approximately 83%, 88% and 88%, respectively, of gross billings. |
Accounts Receivable | Accounts Receivable Accounts receivable are reported at realizable value, net of allowances for doubtful accounts, which is estimated and recorded in the period of the related revenue. The Company’s ability to collect outstanding receivables from third-party payers is critical to its operating performance and cash flows. The primary collection risk lies with uninsured patients or patients for whom primary insurance has paid but a patient portion remains outstanding. In the case of COVID-19 diagnostic and antibody testing, collection risk for uninsured patients is minimized. Federal Reimbursement for Uninsured Patients Testing is processed by submitting a claim to the Health Resources and Services Administration COVID 19 Uninsured Program. This government program provides reimbursement to the Company for COVID-19 diagnostic and antibody testing provided to uninsured patients and requires specific information along with an attestation of attempts to obtain this information accurately in order to submit claims. The program will perform its own validation process and there is required information about the patient that the Company must provide to be considered for reimbursement. The Company also assesses the current state of its billing functions in order to identify any known collection issues and to assess the impact, if any, on the allowance estimates which involves judgment. The Company believes that the collectability of its receivables is directly linked to the quality of its billing processes, most notably, those related to obtaining the correct information in order to bill effectively for the services provided. Should circumstances change (e.g. shift in payer mix, decline in economic conditions or deterioration in aging of receivables), our estimates of net realizable value of receivables could be reduced by a material amount. The Clinical Laboratory Services segment’s net receivables are detailed by billing category and as a percent to its total net receivables. At July 31, 2021 and 2020, approximately 59% and 68% respectively, of the Company’s net accounts receivable relates to its Clinical Laboratory Services business, which operates in the New York, New Jersey and Connecticut medical communities. The following is a table of the Company’s net accounts receivable by segment. July 31, 2021 July 31, 2020 Net accounts receivable by segment Amount % Amount % Clinical Labs (by billing category) Third party payers $ 2,195 36 $ 2,455 40 Patient self-pay 2,007 33 2,044 33 Medicare 1,122 19 884 14 HMO’s 692 12 797 13 Total Clinical Labs 6,016 100 % 6,180 100 % Total Life Sciences 4,182 2,961 Total accounts receivable – net $ 10,198 $ 9,141 |
Inventories | Inventories The Company values inventory at the lower of cost (first-in, first-out) or net realizable value. Work-in-process and finished goods inventories consist of material, labor, and manufacturing overhead. Finished goods also include high throughput machines we intend to sell to laboratory customers. Write downs of inventories to net realizable value are based on a review of inventory quantities on hand and estimated sales forecasts based on sales history and anticipated future demand. Unanticipated changes in demand could have a significant impact on the value of our inventory and require additional write downs of inventory which would impact our results of operations. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment is stated at cost, and depreciated on the straight-line basis over the estimated useful lives of the various asset classes as follows: building and building improvements: 15-30 years; laboratory machinery and equipment, office furniture and computer equipment: 3-10 years. Leasehold improvements are amortized over the term of the related leases or estimated useful lives of the assets, whichever is shorter. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Intangible assets (exclusive of patents), arose primarily from acquisitions, and primarily consist of customer relationships, trademarks, licenses, and website and database content. Our intangible assets are all finite-lived and are amortized according to their estimated useful lives, which range from 4 to 15 years. Patents represent capitalized legal costs incurred in pursuing patent applications. When such applications result in an issued patent, the related capitalized costs, if any, are amortized over a ten year period or the life of the patent, whichever is shorter, using the straight-line method. The Company reviews its issued patents and pending patent applications, and if it determines to abandon a patent application or that an issued patent no longer has economic value, the unamortized balance in deferred patent costs relating to that patent is immediately expensed. |
Impairment testing for Goodwill and Long-Lived Assets | Impairment testing for Goodwill and Long-Lived Assets The Company tests goodwill annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. In assessing goodwill for impairment, the Company has the option to first perform a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is not required to perform any additional tests in assessing goodwill for impairment. However, if the Company concludes otherwise or elects not to perform the qualitative assessment, then it identifies the reporting units and compares the fair value of each of these reporting units to their respective carrying amount. If the carrying amount of the reporting unit is less than its fair value, no impairment exists. If the carrying amount of the reporting unit is higher than its fair value, the impairment charge is the amount by which the carrying amount exceeds its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The Company performed a quantitative assessment in 2021, 2020 and 2019, and concluded there were no goodwill impairments. The Company reviews the recoverability of the carrying value of long-lived assets (including its intangible assets, all of which have finite lives) of an asset or asset group for impairment annually as of the end of the fiscal year, or more frequently if indicators of potential impairment exist. Should indicators of impairment exist, the carrying values of the assets are evaluated in relation to the operating performance and future undiscounted cash flows of an asset or asset group. The net book value of the long lived asset is adjusted to fair value if its expected future undiscounted cash flow is less than its book value. There were no long-lived asset impairments in 2021, 2020 or 2019. Should the impact of the COVID-19 pandemic be significantly worse than currently expected, it is possible that we could incur impairment charges on goodwill and other long lived assets in the future. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of the Company’s consolidated net income (loss) and foreign currency translation adjustments. Foreign currency translation adjustments included in comprehensive income (loss) were not tax effected as the Company has a full valuation allowance at July 31, 2021. Accumulated other comprehensive income is a separate component of stockholders’ equity and consists of the cumulative foreign currency translation adjustments. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs associated with the distribution of finished goods to customers are recorded in cost of goods sold. |
Research and Development | Research and Development Research and development costs are charged to expense as incurred. |
Advertising | Advertising All costs associated with advertising are expensed as incurred. Advertising expense, included in selling, general and administrative expense, approximated $400, $437 and $374 for the years ended July 31, 2021, 2020 and 2019, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes under the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The liability method requires that any tax benefits recognized for net operating loss carry forwards and other items be reduced by a valuation allowance when it is more likely than not that the benefits may not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the liability method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At July 31, 2021, the Company believes it has appropriately accounted for any unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. |
Segment Reporting | Segment Reporting The Company separately reports information about each operating segment that engages in business activities from which the segment may earn revenues and incur expenses, whose separate operating results are regularly reviewed by the chief operating decision maker regarding allocation of resources and performance assessment and which exceed specific quantitative thresholds related to revenue and profit or loss. The Company’s operating activities are reported in three segments (see Note 17). |
Net income (loss) per share | Net income (loss) per share Basic net income (loss) per share represents net income (loss) divided by the weighted average number of common shares outstanding during the period. The dilutive effect of potential common shares, consisting of outstanding stock options and unvested restricted stock, is determined using the treasury stock method. For fiscal 2021 and 2019, approximately 134,000 and 125,000 respectively, of weighted average stock options were included in the calculation of diluted weighted average shares outstanding. Diluted weighted average shares outstanding for fiscal 2020 does not include the potential common shares from stock options and unvested restricted stock because to do so would have been antidilutive and as such is the same as basic weighted average shares outstanding for 2020. The number of potential common shares (“in the money options”) and unvested restricted stock excluded from the calculation of diluted weighted average shares outstanding for the year ended July 31, 2020 was 40,000. For the years ended July 31, 2021, 2020 and 2019, the effect of approximately 1,465,000, 1,904,000 and 1,324,000 respectively, of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted weighted average shares outstanding because their effect would be anti-dilutive. The following table sets forth the computation of basic and diluted net income (loss) per share for the years ended July 31: 2021 2020 2019 Net income (loss) $ 7,875 $ (28,520 ) $ 2,489 Weighted-average common shares outstanding – basic 48,191 47,696 47,351 Add: effect of dilutive stock options and restricted stock 134 — 125 Weighted-average common shares outstanding – diluted 48,325 47,696 47,476 Net (loss) income per share – basic $ 0.16 $ (0.60 ) $ 0.05 Net (loss) income per share – diluted $ 0.16 $ (0.60 ) $ 0.05 |
Share-Based Compensation | Share-Based Compensation The Company records compensation expense associated with stock options and restricted stock based upon the fair value of stock based awards as measured at the grant date. The Company determines the award values of stock options using the Black Scholes option pricing model. The expense is recognized by amortizing the fair values on a straight-line basis over the vesting period, adjusted for forfeitures when they occur. For the years ended July 31, 2021, 2020 and 2019, share-based compensation expense relating to the fair value of stock options, restricted shares and restricted stock units was approximately $907, $923 and $939, respectively (see Note 12). During the year ended July 31, 2020, the Company issued common stock as employee compensation in the amount of $10. No excess tax benefits were recognized for the year ended July 31, 2021, 2020 and 2019. The following table sets forth the amount of expense related to share-based payment arrangements included in specific line items in the accompanying statement of operations for the years ended July 31: 2021 2020 2019 Cost of clinical laboratory services $ 93 $ 46 $ — Selling, general and administrative 814 887 939 $ 907 $ 933 $ 939 As of July 31, 2021, there was $755 of total unrecognized compensation cost related to non-vested share-based payment arrangements granted under the Company’s incentive stock plans, which will be recognized over a weighted average remaining life of approximately fifteen months. |
Effect of New Accounting Pronouncements | Effect of New Accounting Pronouncements Recently Adopted Accounting Pronouncements On August 1, 2019, the Company adopted a new accounting standard issued by the Financial Accounting Standards Board (“FASB”) on accounting for leases using the modified retrospective method. This new accounting standard requires a lessee to recognize an asset and liability for most leases on its balance sheet. The Company elected the optional transition method that allowed for a cumulative-effect adjustment to the opening balance of retained earnings recorded on August 1, 2019 and did not restate previously reported results in the comparative periods. The Company also elected the package of practical expedients, which among other things, allowed it to carry forward its historical lease classification. As a result of adoption of the new standard, the Company recorded right-of-use assets and operating lease liabilities of approximately $24.4 million and $25.1 million, respectively as of August 1, 2019. The operating lease liability was determined based on the present value of the remaining minimum rental payments and the right-of-use asset was determined based on the value of the lease liability, adjusted for deferred rent balances of approximately $0.7 million, which were previously included in accrued expenses. There was no cumulative effect adjustment to the opening balance of accumulated deficit. Accounting for the Company’s finance leases remains substantially unchanged. The adoption of the new standard did not materially impact the Company’s consolidated results of operations or cash flows. The adoption of this new accounting standard resulted in increased qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The Company elected the package of three practical expedients. As such, the Company did not reassess whether expired or existing contracts are or contain a lease and did not need to reassess the lease classifications or reassess the initial direct costs associated with expired or existing leases. The Company did not elect the hindsight practical expedient. Further, the land easement practical expedient was not elected as the practical expedient is not applicable to the Company. The Company elected to take the practical expedient to not separate lease and non-lease components of all asset classes entered into or modified after the effective date. For further details, see Note 9. |
Pronouncements Issued but Not Yet Adopted | Pronouncements Issued but Not Yet Adopted In June 2016, FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses (Topic 326). This standard changes the impairment model for most financial instruments, including trade receivables, from an incurred loss method to a new forward-looking approach, based on expected losses. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. Adoption of this standard is required for our annual and interim periods beginning August 1, 2023, provided we qualify as a smaller reporting company at the end of fiscal 2022 and must be adopted using a modified retrospective transition approach. We are currently assessing the impact of the adoption of this standard on our results of operations, financial position and cash flows. In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. We reviewed all other recently issued accounting pronouncements and have concluded they are not applicable or not expected to be significant to the accounting for our operations. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on the reported results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of net accounts receivable by segment | July 31, 2021 July 31, 2020 Net accounts receivable by segment Amount % Amount % Clinical Labs (by billing category) Third party payers $ 2,195 36 $ 2,455 40 Patient self-pay 2,007 33 2,044 33 Medicare 1,122 19 884 14 HMO’s 692 12 797 13 Total Clinical Labs 6,016 100 % 6,180 100 % Total Life Sciences 4,182 2,961 Total accounts receivable – net $ 10,198 $ 9,141 |
Schedule of basic and diluted net income (loss) per share | 2021 2020 2019 Net income (loss) $ 7,875 $ (28,520 ) $ 2,489 Weighted-average common shares outstanding – basic 48,191 47,696 47,351 Add: effect of dilutive stock options and restricted stock 134 — 125 Weighted-average common shares outstanding – diluted 48,325 47,696 47,476 Net (loss) income per share – basic $ 0.16 $ (0.60 ) $ 0.05 Net (loss) income per share – diluted $ 0.16 $ (0.60 ) $ 0.05 |
Schedule of expenses related share-based payment arrangements | 2021 2020 2019 Cost of clinical laboratory services $ 93 $ 46 $ — Selling, general and administrative 814 887 939 $ 907 $ 933 $ 939 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of net carrying amount of intangible assets | Gross Accumulated Net July 31, 2019 $ 27,238 $ (26,206 ) $ 1,032 Amortization expense — (524 ) (524 ) Foreign currency translation 448 (418 ) 30 July 31, 2020 $ 27,686 $ (27,148 ) $ 538 Amortization expense — (296 ) (296 ) Foreign currency translation 89 (87 ) 2 July 31, 2021 $ 27,775 $ (27,531 ) $ 244 |
Schedule of all finite-lived intangible assets | July 31, 2021 July 31, 2020 Gross Accumulated Net Gross Accumulated Net Patents $ 11,027 (11,027 ) $ — $ 11,027 $ (11,014 ) $ 13 Customer relationships 12,059 (11,815 ) 244 12,003 (11,478 ) 525 Website and acquired content 1,025 (1,025 ) — 1,022 (1,022 ) — Licensed technology and other 494 (494 ) — 483 (483 ) — Trademarks 3,170 (3,170 ) — 3,151 (3,151 ) — Total $ 27,775 (27,531 ) $ 244 $ 27,686 $ (27,148 ) $ 538 |
Schedule of acquired intangibles | Useful life assigned Weighted average remaining useful life Customer relationships 8-15 years Less than 1 year |
Schedule of estimated amortization expense related to finite-lived intangible assets | 2022 $ 244 2023 — 2024 — 2025 — 2026 — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of clinical services net revenues and percentages | Year ended July 31, 2021 Year ended July 31, 2020 Year ended July 31, 2019 Revenue category Revenue % Revenue % Revenue % Third-party payers $ 52,564 60 $ 24,893 52 $ 26,653 52 Medicare 13,084 15 10,825 23 10,898 21 HMO’s 11,878 14 5,983 12 6,213 12 Patient self-pay 9,458 11 6,263 13 7,351 15 Total $ 86,984 100 % $ 47,964 100 % $ 51,115 100 % |
Schedule of product revenue by geography | 2021 2020 2019 United States $ 15,617 $ 14,824 $ 16,966 Europe 10,386 7,720 8,551 Asia Pacific 4,744 4,017 4,538 Products revenue $ 30,747 $ 26,561 $ 30,055 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | 2021 2020 Raw materials $ 1,062 $ 1,019 Work in process 2,534 2,587 Finished products 9,056 4,178 $ 12,652 $ 7,784 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant, and equipment | 2021 2020 Building and building improvements $ 10,310 $ 10,089 Machinery and equipment (includes assets under finance leases - see Note 9) 12,721 8,548 Office furniture and computer equipment 15,942 16,578 Leasehold improvements 5,692 5,377 44,665 40,592 Accumulated depreciation and amortization (30,142 ) (28,172 ) 14,523 12,420 Land and land improvements 2,062 2,062 $ 16,585 $ 14,482 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of benefit for income taxes | 2021 2020 2019 Federal $ — $ — $ — State and local — — — Foreign — — — Deferred benefit — — — Benefit for income taxes $ — $ — $ — |
Schedule of deferred tax assets and liabilities | 2021 2020 Deferred tax assets: Federal tax carryforward losses $ 18,140 $ 18,173 Provision for uncollectible accounts receivable 970 1,079 State and local tax carry forward losses 1,658 1,187 Accrued royalties — 101 Stock compensation 1,088 898 Depreciation 850 799 Research and development and other tax credit carryforwards 1,527 1,477 Lease liabilities 5,194 5,520 Foreign tax carryforward losses 2,536 3,357 Intangibles and goodwill 858 1,162 Inventory 1,637 1,156 Accrued expenses 1,341 1,176 Other, net 17 37 Deferred tax assets 35,816 36,122 Right of use assets (4,917 ) (5,288 Prepaid expenses (946 ) (705 ) Other, net (79 ) (52 ) Deferred tax liabilities (5,942 ) (6,045 ) Net deferred tax assets before valuation allowance 29,874 30,077 Less: valuation allowance (29,874 ) (30,077 ) Net deferred tax liabilities $ — $ — |
Schedule of income (loss) before income taxes | 2021 2020 2019 United States operations $ 8,832 $ (27,690 ) $ 4,618 International operations (957 ) (830 ) (2,129 ) Income (loss) before taxes $ 7,875 $ (28,520 ) $ 2,489 |
(provision) or benefit for income taxes | 2021 2020 2019 Federal statutory rate (21.0 )% 21.0 % (21.0 )% Compensation and other expenses not deductible for income tax return purposes (3.4 ) (1.1 ) (15.3 ) PPP loan forgiveness income not taxable for income tax return purposes 18.7 — — Change in valuation allowance, net 5.7 (19.9 ) 33.6 Other — — 2.7 — % — % — % |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of minimum future annual principal payments | July 31, Total 2022 $ 152 2023 160 2024 167 2025 606 2026 186 Thereafter 3,290 Total principal payments 4,561 Less: current portion, included in other current liabilities and other short term debt (152 ) unamortized mortgage cost (53 ) Long term debt - net $ 4,356 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Leases Disclosure [Abstract] | |
Schedule of components lease | Leases Balance Sheet Classification July 31, July 31, Assets Operating Right-of-use assets $ 17,020 $ 19,916 Finance Property, plant and equipment, net (a) 248 385 Total lease assets $ 17,268 $ 20,301 Liabilities Current: Operating Current portion of operating lease liabilities $ 3,419 $ 4,121 Finance Finance leases short term 88 201 Non-current: Operating Operating lease liabilities, non-current 14,558 16,679 Finance Other liabilities and finance leases long term 110 161 Total lease liabilities $ 18,175 $ 21,162 (a) Accumulated amortization of finance lease assets was approximately $1,100 and $1,000 as of July 31, 2021 and 2020, respectively. |
Schedule of lease cost | Lease Cost 2021 2020 Operating lease cost $ 5,474 $ 5,813 Finance lease cost: Amortization of leased assets 137 251 Interest on lease liabilities 16 35 Total lease cost $ 5,627 $ 6,099 |
Schedule of lease liability maturity | Maturity of lease liabilities, years ending July 31, Operating Finance Total 2022 $ 4,326 $ 88 $ 4,414 2023 3,547 88 3,635 2024 3,385 37 3,422 2025 3,158 — 3,158 2026 3,150 — 3,150 Thereafter 3,224 — 3,224 Total lease payments 20,790 213 21,003 Less: Interest (a) (2,813 ) (15 ) (2,828 ) Present value of lease liabilities $ 17,977 $ 198 $ 18,175 (a) Primarily calculated using the Company’s incremental borrowing rate. |
Schedule of lease term and discount rate | Lease term and discount rate 2021 2020 Weighted-average remaining lease term (years): Operating leases 5.6 years 6.2 years Finance leases 2.5 years 2.7 years Weighted-average discount rate: Operating leases 4.9 % 4.9 % Finance leases 7.4 % 8.6 % |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities | 2021 2020 Payroll, benefits and commissions $ 5,856 $ 5,227 Professional fees 628 710 Legal 2,554 2,647 Deferred revenue 2,675 2,526 Other 2,588 1,723 $ 14,301 $ 12,833 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Schedule of other current liabilities | 2021 2020 Finance lease obligations, current portion $ 81 $ 255 Current portion of mortgage loan 152 136 $ 233 $ 391 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of the option activity pursuant to the Company’s stock option plans | 2021 2020 2019 Options Weighted - Options Weighted - Options Weighted - Outstanding at beginning of year 2,636,496 $ 4.05 2,351,040 $ 4.53 1,882,116 $ 4.96 New Grants 543,104 $ 2.57 773,032 $ 2.40 715,321 $ 2.81 Exercised (34,667 ) $ 2.80 — $ — (238,230 ) $ 2.69 Expired or forfeited (640,370 ) $ 3.52 (487,576 ) $ 3.71 (8,167 ) $ 6.55 Outstanding at end of year 2,504,563 $ 3.74 2,636,496 $ 4.05 2,351,040 $ 4.53 Exercisable at end of year 1,561,326 $ 4.37 1,457,162 $ 5.10 1,342,564 $ 5.16 Weighted average fair value of options granted during year $ 1.27 $ 1.01 $ 1.07 |
Schedule of determine the fair value of options granted | Grant Year Options Granted Exercise Price Range Term Vesting Period (years) FMV of options Granted/Per Share Expected Life (years) Expected Volatility % Interest Vested Shares at 7/31/2021 2021 543,104 $ 2.14 - $2.63 5 2 - 3 $ 1.04 - $1.30 3.25 – 3.5 69.36 – 73.26 0.19 – 0.26 — 2020 773,032 $ 2.20 - $3.32 5 2 - 3 $ 0.86 - $1.34 3.25 – 3.5 53.77 – 66.24 0.27 – 1.2 271,066 2019 715,321 $ 2.80 - $3.21 5 2 - 3 $ 1.06 – $1.23 3.25 - 3.5 48.06 - 50.56 2.47- 2.96 525,547 |
Schedule of share based compensation stock options activity range of exercise prices | Range of Exercise prices Shares Weighted- Weighted- $ 2.14 - $3.32 1,748,017 3.5 $ 2.57 $ 4.35 - $4.42 255,000 2.0 $ 4.42 $ 5.52 - $8.36 501,546 0.7 $ 7.15 2,504,563 Range of Exercise prices Shares Weighted- Weighted- $ 2.20 - $3.32 819,947 2.8 $ 2.66 $ 4.35 - $4.42 238,333 2.0 $ 4.42 $ 5.52 - $8.36 503,046 0.7 $ 7.15 1,561,326 |
Schedule of PSU’s granted and outstanding | Grant Date Total Grant Forfeitures Outstanding Fair Market Value 1/3/2019 80,500 (14,500 ) 66,000 $ 222 2/25/2020 98,600 — 98,600 $ 207 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Employee Benefit Plans (Tables) [Line Items] | |
Schedule of employee benefit plans | As of December 31, 2020 2019 2018 Total Assets $ 2,721 $ 2,181 $ 2,064 Accumulated Benefit Obligation $ 2,890 $ 2,401 $ 2,308 Funded status 94 % 91 % 90 % Fiscal Year ended July 31, 2020 2019 2018 Employer contributions $ 143 $ 165 $ 208 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of financial information represents the operating results of the reportable segments | Clinical Life Therapeutics Other Consolidated Revenues $ 86,984 $ 30,747 $ — $ — $ 117,731 Operating costs and expenses: Cost of revenues 48,179 15,975 — — 64,154 Research and development 615 2,559 78 — 3,252 Selling, general and administrative 26,028 11,015 62 7,800 44,905 Legal and related expenses 264 25 — 4,439 4,728 Total operating costs and expenses 75,086 29,574 140 12,239 117,039 Operating income (loss) 11,898 1,173 (140 ) (12,239 ) 692 Other income (expense) Interest (17 ) 37 — (12 ) 8 Other (18 ) 7 — 6,916 6,905 Foreign exchange gain — 270 — — 270 Income (loss) before taxes $ 11,863 $ 1,487 $ (140 ) $ (5,335 ) $ 7,875 Depreciation and amortization included above $ 1,609 $ 756 $ — $ 288 $ 2,653 Share-based compensation included in above: Selling, general and administrative 33 102 — $ 679 814 Cost of sales 93 — — — 93 Total $ 126 $ 102 $ — $ 679 $ 907 Capital expenditures $ 3,352 $ 752 $ — $ 332 $ 4,436 Clinical Life Therapeutics Other Consolidated Revenues – Services and Products $ 47,964 $ 26,561 — — $ 74,525 Grant income 1,496 — — — 1,496 Total 49,460 26,561 — — 76,021 Operating costs and expenses:: Cost of revenues 38,855 13,396 — — 52,251 Research and development 1,509 2,190 $ 749 — 4,448 Selling, general and administrative 23,533 10,485 — $ 8,942 42,960 Legal and related expenses 211 2 — 6,516 6,729 Total operating costs and expenses 64,108 26,073 749 15,458 106,388 Operating (loss) income (14,648 ) 488 (749 ) (15,458 ) (30,367 ) Other income (expense) Interest (36 ) 56 — 434 454 Other 45 13 — 430 488 Foreign exchange gain — 905 — — 905 (Loss) income before taxes $ (14,639 ) $ 1,462 $ (749 ) $ (14,594 ) $ (28,520 ) Depreciation and amortization included above $ 1,553 $ 964 — $ 263 $ 2,780 Share-based compensation included above: Selling, general and administrative 57 74 — 756 887 Cost of sales 46 — — — 46 Total $ 103 $ 74 — $ 756 $ 933 Capital expenditures $ 1,811 $ 322 — $ 37 $ 2,170 Clinical Life 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 and related expenses 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 |
Schedule of geographic financial information | Net Services, Products and Grant revenues from unaffiliated customers, Year ended July 31,: 2021 2020 2019 United States $ 102,602 $ 64,284 $ 68,081 Europe 10,386 7,720 8,551 Asia Pacific 4,744 4,017 4,538 Total $ 117,731 $ 76,021 $ 81,170 Long-lived assets, at July 31, 2021 2020 United States $ 41,249 $ 41,946 Europe 52 442 Total $ 41,301 $ 42,388 |
Schedule of revenues attributable to customers located in the United States and foreign countries | 2021 2020 2019 United States $ 15,617 $ 14,824 $ 16,966 Foreign countries 15,130 11,737 13,089 $ 30,747 $ 26,561 $ 30,055 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jul. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of II valuation and qualifying accounts | Year ended Description Balance at Charged Charged Deductions Balance at 2021 Allowance for doubtful accounts receivable 194 5 $ 19 (1) 180 2020 Allowance for doubtful accounts receivable $ 166 $ 28 — $ 194 2019 Allowance for doubtful accounts receivable 145 42 $ 21 (1) 166 2021 Deferred tax valuation allowance $ 30,077 $ (203 ) — $ 29,874 2020 Deferred tax valuation allowance 23,527 6,550 — 30,077 2019 Deferred tax valuation allowance 24,471 (944 ) — 23,527 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2021USD ($)shares | Jul. 31, 2020USD ($)shares | Jul. 31, 2019USD ($)shares | Aug. 01, 2019USD ($) | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Number of operating segments | 3 | |||
Fair value of investments | $ 29,978 | |||
Fair value investments cost basis | $ 30,061 | |||
Unrealized Loss on Securities | $ 83 | |||
Contractual adjustment percentages | 83.00% | 88.00% | 88.00% | |
Advertising expense | $ 400 | $ 437 | $ 374 | |
Weighted average stock options (in Shares) | shares | 134,000 | 125,000 | ||
Share-based compensation expense | $ 907 | 923 | $ 939 | |
Employee benefits and share based compensation | 10 | |||
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount | $ 755 | |||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 15 months | |||
Right-of-use assets | $ 17,020 | 19,916 | $ 24,400 | |
Operating lease liabilities | 14,558 | 16,679 | 25,100 | |
Deferred rent credit, current | $ 700 | |||
Foreign bank [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Cash and cash equivalents | $ 909 | $ 909 | ||
In the money stock options [Member] | Unvested Restricted Stock [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in Shares) | shares | 40,000 | |||
Out of the Money [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in Shares) | shares | 1,465,000 | 1,904,000 | 1,324,000 | |
Patents [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Minimum [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Finite-lived intangible asset, useful life | 4 years | |||
Minimum [Member] | Building and Building Improvements [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Property, plant and equipment, useful life | 15 years | |||
Minimum [Member] | Machinery and Equipment [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Maximum [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Finite-lived intangible asset, useful life | 15 years | |||
Maximum [Member] | Building and Building Improvements [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Property, plant and equipment, useful life | 30 years | |||
Maximum [Member] | Machinery and Equipment [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Property, plant and equipment, useful life | 10 years | |||
Clinical Revenue [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Concentration risk percentage | 48.00% | 8.00% | ||
Clinical Services [Member] | Revenue Benchmark [Member] | Third Party Payer [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Clinical Services net revenue | 35.00% | |||
Clinical Services net accounts receivable percentage | 27.00% | |||
Clinical Services [Member] | Revenue Benchmark [Member] | Health Maintenance Organization [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Clinical Services net revenue | 24.00% | 36.00% | ||
Clinical Services net accounts receivable percentage | 16.00% | |||
Clinical Laboratory Services [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Receivable percentage | 59.00% | 68.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of net accounts receivable by segment - USD ($) $ in Thousands | Jul. 31, 2021 | Jul. 31, 2020 |
Summary of Significant Accounting Policies (Details) - Schedule of net accounts receivable by segment [Line Items] | ||
Accounts receivable net, current | $ 10,198 | $ 9,141 |
Clinical Labs [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of net accounts receivable by segment [Line Items] | ||
Accounts receivable net, current | $ 6,016 | $ 6,180 |
Accounts receivable net, current, percentage | 100.00% | 100.00% |
Life science [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of net accounts receivable by segment [Line Items] | ||
Accounts receivable net, current | $ 4,182 | $ 2,961 |
Third party payers [Member] | Clinical Labs [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of net accounts receivable by segment [Line Items] | ||
Accounts receivable net, current | $ 2,195 | $ 2,455 |
Accounts receivable net, current, percentage | 36.00% | 40.00% |
Patient self-pays [Member] | Clinical Labs [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of net accounts receivable by segment [Line Items] | ||
Accounts receivable net, current | $ 2,007 | $ 2,044 |
Accounts receivable net, current, percentage | 33.00% | 33.00% |
Medicare [Member] | Clinical Labs [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of net accounts receivable by segment [Line Items] | ||
Accounts receivable net, current | $ 1,122 | $ 884 |
Accounts receivable net, current, percentage | 19.00% | 14.00% |
Health maintenance organizations [Member] | Clinical Labs [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of net accounts receivable by segment [Line Items] | ||
Accounts receivable net, current | $ 692 | $ 797 |
Accounts receivable net, current, percentage | 12.00% | 13.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted net income (loss) per share - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Schedule of basic and diluted net income (loss) per share [Abstract] | |||
Net income (loss) (in Dollars) | $ 7,875 | $ (28,520) | $ 2,489 |
Weighted-average common shares outstanding – basic | 48,191 | 47,696 | 47,351 |
Add: effect of dilutive stock options and restricted stock (in Dollars) | $ 134 | $ 125 | |
Weighted-average common shares outstanding – diluted | 48,325 | 47,696 | 47,476 |
Net (loss) income per share – basic | 0.16 | (0.60) | 0.05 |
Net (loss) income per share – diluted | 0.16 | (0.60) | 0.05 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of expenses related share-based payment arrangements - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Aug. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share Based Compensation | $ 907 | $ 933 | $ 939 |
Cost of Clinical Laboratory Services [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share Based Compensation | 93 | 46 | |
Selling, General and Administrative Expenses [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share Based Compensation | $ 814 | $ 887 | $ 939 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 7,452 | $ 7,452 | |
Weighted average remaining useful life | 1 year | ||
Amortization expense | $ 296 | $ 524 | $ 842 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details) - Schedule of net carrying amount of intangible assets - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Schedule of net carrying amount of intangible assets [Abstract] | ||
Gross, Beginning Balance | $ 27,686 | $ 27,238 |
Accumulated Amortization, Beginning Balance | (27,148) | (26,206) |
Net, Beginning Balance | 538 | 1,032 |
Gross, Ending Balance | 27,775 | 27,686 |
Accumulated Amortization, Ending Balance | (27,531) | (27,148) |
Net, Ending Balance | 244 | 538 |
Amortization expense, Gross | ||
Amortization expense, Accumulated Amortization | (296) | (524) |
Amortization expense, Net | (296) | (524) |
Foreign currency translation, Gross | 89 | 448 |
Foreign currency translation, Accumulated Amortization | (87) | (418) |
Foreign currency translation, Net | $ 2 | $ 30 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details) - Schedule of all finite-lived intangible assets - USD ($) $ in Thousands | Jul. 31, 2021 | Jul. 31, 2020 |
Goodwill and Intangible Assets (Details) - Schedule of all finite-lived intangible assets [Line Items] | ||
Finite-lived intangible assets, Gross | $ 27,775 | $ 27,686 |
Finite-lived intangible assets, Accumulated Amortization | (27,531) | (27,148) |
Finite-lived intangible assets, Net | 244 | 538 |
Patents [Member] | ||
Goodwill and Intangible Assets (Details) - Schedule of all finite-lived intangible assets [Line Items] | ||
Finite-lived intangible assets, Gross | 11,027 | 11,027 |
Finite-lived intangible assets, Accumulated Amortization | (11,027) | (11,014) |
Finite-lived intangible assets, Net | 13 | |
Customer Relationships [Member] | ||
Goodwill and Intangible Assets (Details) - Schedule of all finite-lived intangible assets [Line Items] | ||
Finite-lived intangible assets, Gross | 12,059 | 12,003 |
Finite-lived intangible assets, Accumulated Amortization | (11,815) | (11,478) |
Finite-lived intangible assets, Net | 244 | 525 |
Website and Acquired Content [Member] | ||
Goodwill and Intangible Assets (Details) - Schedule of all finite-lived intangible assets [Line Items] | ||
Finite-lived intangible assets, Gross | 1,025 | 1,022 |
Finite-lived intangible assets, Accumulated Amortization | (1,025) | (1,022) |
Finite-lived intangible assets, Net | ||
Licensed Technology and Other [Member] | ||
Goodwill and Intangible Assets (Details) - Schedule of all finite-lived intangible assets [Line Items] | ||
Finite-lived intangible assets, Gross | 494 | 483 |
Finite-lived intangible assets, Accumulated Amortization | (494) | (483) |
Finite-lived intangible assets, Net | ||
Trademarks [Member] | ||
Goodwill and Intangible Assets (Details) - Schedule of all finite-lived intangible assets [Line Items] | ||
Finite-lived intangible assets, Gross | 3,170 | 3,151 |
Finite-lived intangible assets, Accumulated Amortization | (3,170) | (3,151) |
Finite-lived intangible assets, Net |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Details) - Schedule of acquired intangibles | 12 Months Ended |
Jul. 31, 2021 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Weighted average remaining useful life | Less than 1 year |
Minimum [Member] | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Useful life assigned | 8 years |
Maximum [Member] | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Useful life assigned | 15 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Details) - Schedule of estimated amortization expense related to finite-lived intangible assets $ in Thousands | Jul. 31, 2021USD ($) |
Schedule of estimated amortization expense related to finite-lived intangible assets [Abstract] | |
2022 | $ 244 |
2023 | |
2024 | |
2025 | |
2026 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Apr. 30, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Revenue Recognition (Details) [Line Items] | |||||
Income grants (in Dollars) | $ 1,496 | $ 1,496 | |||
Clinical Services Revenue [Member] | |||||
Revenue Recognition (Details) [Line Items] | |||||
Percentage of clinical services business | 74.00% | 63.00% | 63.00% |
Revenue Recognition (Details) -
Revenue Recognition (Details) - Schedule of clinical services net revenues and percentages - Clinical services [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Revenue Recognition (Details) - Schedule of clinical services net revenues and percentages [Line Items] | |||
Revenue services net | $ 86,984 | $ 47,964 | $ 51,115 |
Revenue services net, percentage | 100.00% | 100.00% | 100.00% |
Third-party payers [Member] | |||
Revenue Recognition (Details) - Schedule of clinical services net revenues and percentages [Line Items] | |||
Revenue services net | $ 52,564 | $ 24,893 | $ 26,653 |
Revenue services net, percentage | 60.00% | 52.00% | 52.00% |
Medicare [Member] | |||
Revenue Recognition (Details) - Schedule of clinical services net revenues and percentages [Line Items] | |||
Revenue services net | $ 13,084 | $ 10,825 | $ 10,898 |
Revenue services net, percentage | 15.00% | 23.00% | 21.00% |
HMO’s [Member] | |||
Revenue Recognition (Details) - Schedule of clinical services net revenues and percentages [Line Items] | |||
Revenue services net | $ 11,878 | $ 5,983 | $ 6,213 |
Revenue services net, percentage | 14.00% | 12.00% | 12.00% |
Patient self-pay [Member] | |||
Revenue Recognition (Details) - Schedule of clinical services net revenues and percentages [Line Items] | |||
Revenue services net | $ 9,458 | $ 6,263 | $ 7,351 |
Revenue services net, percentage | 11.00% | 13.00% | 15.00% |
Revenue Recognition (Details)_2
Revenue Recognition (Details) - Schedule of product revenue by geography - Products revenue [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Aug. 31, 2019 | |
Revenue Recognition (Details) - Schedule of product revenue by geography [Line Items] | |||
Products revenue | $ 30,747 | $ 26,561 | $ 30,055 |
United States [Member] | |||
Revenue Recognition (Details) - Schedule of product revenue by geography [Line Items] | |||
Products revenue | 15,617 | 14,824 | 16,966 |
Europe [Member] | |||
Revenue Recognition (Details) - Schedule of product revenue by geography [Line Items] | |||
Products revenue | 10,386 | 7,720 | 8,551 |
Rest of the world [Member] | |||
Revenue Recognition (Details) - Schedule of product revenue by geography [Line Items] | |||
Products revenue | $ 4,744 | $ 4,017 | $ 4,538 |
Supplemental Disclosure for S_2
Supplemental Disclosure for Statement of Cash Flows (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | 13 Months Ended | ||
Jan. 31, 2021 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | Aug. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||||
Interest paid | $ 237 | $ 266 | $ 138 | ||
Reductions in measurement right of use assets and liabilities | 74 | 884 | |||
Tax on capital paid | 305 | 90 | 94 | ||
Share based compensation | $ 780 | 839 | $ 832 | ||
Common stock to executives (in Shares) | 332,700 | 332,700 | |||
Accrued bonuses | $ 875 | $ 875 | |||
Finance lease agreements | $ 0 | $ 0 | $ 381 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands | Jul. 31, 2021 | Jul. 31, 2020 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 1,062 | $ 1,019 |
Work in process | 2,534 | 2,587 |
Finished products | 9,056 | 4,178 |
Total inventories | $ 12,652 | $ 7,784 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) $ in Thousands | Jul. 31, 2021USD ($) |
Property, Plant and Equipment [Abstract] | |
Building and building improvements | $ 100 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of property, plant, and equipment - USD ($) $ in Thousands | Jul. 31, 2021 | Jul. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, Gross | $ 44,665 | $ 40,592 |
Accumulated depreciation and amortization | (30,142) | (28,172) |
Property, plant, and equipment, gross excluding land and land improvements | 14,523 | 12,420 |
Land and land improvements | 2,062 | 2,062 |
Property, plant, and equipment, Net | 16,585 | 14,482 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, Gross | 10,310 | 10,089 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, Gross | 12,721 | 8,548 |
Office furniture and computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, Gross | 15,942 | 16,578 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, Gross | $ 5,692 | $ 5,377 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (200) | $ 6,600 |
Net operating loss carryforwards, description | the Company had U.S. federal net operating loss carryforwards of approximately $85,600 of which $58,500, if not fully utilized, expire between 2030 and 2038 and which $27,100 do not expire. Utilization is dependent on generating sufficient taxable income prior to expiration of the tax loss carryforwards. In addition, the Company has research and development tax credit carryforwards of approximately $1,500 which expire between 2025 and 2041. As of July 31, 2021, the Company has state and local net operating loss carryforwards of approximately $28,800, which if not fully utilized, expire between 2038 and 2041. | |
Foreign loss carryforwards | $ 10,700 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of benefit for income taxes - USD ($) | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Schedule of benefit for income taxes [Abstract] | |||
Federal | |||
State and local | |||
Foreign | |||
Deferred benefit | |||
Benefit for income taxes |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of deferred tax assets and liabilities - USD ($) $ in Thousands | Jul. 31, 2021 | Jul. 31, 2020 |
Deferred tax assets: | ||
Federal tax carryforward losses | $ 18,140 | $ 18,173 |
Provision for uncollectible accounts receivable | 970 | 1,079 |
State and local tax carry forward losses | 1,658 | 1,187 |
Accrued royalties | 101 | |
Stock compensation | 1,088 | 898 |
Depreciation | 850 | 799 |
Research and development and other tax credit carryforwards | 1,527 | 1,477 |
Lease liabilities | 5,194 | 5,520 |
Foreign tax carryforward losses | 2,536 | 3,357 |
Intangibles and goodwill | 858 | 1,162 |
Inventory | 1,637 | 1,156 |
Accrued expenses | 1,341 | 1,176 |
Other, net | 17 | 37 |
Deferred tax assets | 35,816 | 36,122 |
Right of use assets | (4,917) | 5,288 |
Prepaid expenses | (946) | (705) |
Other, net | (79) | (52) |
Deferred tax liabilities | (5,942) | (6,045) |
Net deferred tax assets before valuation allowance | 29,874 | 30,077 |
Less: valuation allowance | (29,874) | (30,077) |
Net deferred tax liabilities |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of income (loss) before income taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Income Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | |||
Income (loss) before taxes | $ 7,875 | $ (28,520) | $ 2,489 |
United States operations [Member] | |||
Income Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | |||
Income (loss) before taxes | 8,832 | (27,690) | 4,618 |
International operations [Member] | |||
Income Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | |||
Income (loss) before taxes | $ (957) | $ (830) | $ (2,129) |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of (provision) or benefit for income taxes | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Schedule of (provision) or benefit for income taxes [Abstract] | |||
Federal statutory rate | (21.00%) | 21.00% | (21.00%) |
Compensation and other expenses not deductible for income tax return purposes | (3.40%) | (1.10%) | (15.30%) |
PPP loan forgiveness income not taxable for income tax return purposes | 18.70% | ||
Change in valuation allowance, net | 5.70% | (19.90%) | 33.60% |
Other | 2.70% | ||
Total |
Long Term Debt (Details)
Long Term Debt (Details) SFr in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Sep. 29, 2021 | Nov. 27, 2018USD ($) | Jul. 31, 2021USD ($) | Apr. 30, 2021USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2020CHF (SFr) | |
Long Term Debt (Details) [Line Items] | ||||||
Debt instrument, face amount | $ 4,500 | |||||
Debt instrument maturity period | 10 years | |||||
Debt instrument, interest rate, stated percentage | 5.09% | |||||
Debt instrument, periodic payment | $ 30 | |||||
Amortization of debt issuance costs | $ 72 | |||||
Unamortized debt issuance expense | $ 53 | |||||
Mortgage agreement | 4,100 | |||||
Cash collateral for borrowed securities | $ 750 | |||||
Operating lease, description | We assumed from the seller an operating lease for a tenant at the facility which expired on June 30, 2020. | |||||
Liquid assets | $ 25,000 | |||||
Description of loan | the Company and the mortgagee agreed to further covenant restructuring whereby (a) the liquidity covenant was reduced to 150% of the loan principal (or approximately $6,000 July 31, 2021) from $25,000 previously, and (b) the collateral requirement was increased from $750 to $1,000. | |||||
Foreign exchange rate amount | $ 400 | SFr 400 | ||||
Bear interest rate | 0.00% | |||||
Long term debt term | 5 years | |||||
Fixed interest rate, description | PPP loans have a 1% fixed interest rate and are due from two to five years. | |||||
Maturity date, description | We applied for the PPP loan based on the eligibility and need requirements established when the program was announced and in April 2020 received $7,000 through Citibank N.A., the Company’s existing lender, pursuant to the PPP (the “PPP Loan”). | |||||
Audit loans | $ 2,000 | |||||
Other income loan | $ 7,000 | |||||
Citibank N.A [Member] | ||||||
Long Term Debt (Details) [Line Items] | ||||||
Cash collateral for borrowed securities | $ 7,000 |
Long Term Debt (Details) - Sche
Long Term Debt (Details) - Schedule of minimum future annual principal payments - USD ($) $ in Thousands | Jul. 31, 2021 | Jul. 31, 2020 |
Schedule of minimum future annual principal payments [Abstract] | ||
2022 | $ 152 | |
2023 | 160 | |
2024 | 167 | |
2025 | 606 | |
2026 | 186 | |
Thereafter | 3,290 | |
Total principal payments | 4,561 | |
Less: current portion, included in other current liabilities and other short term debt | (152) | |
unamortized mortgage cost | (53) | |
Long term debt - net | $ 4,356 | $ 4,485 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Leases (Details) [Line Items] | ||
Lease option maximum extension period | 5 years | |
Accumulated amortization of finance lease assets (in Dollars) | $ 1,100 | $ 1,000 |
Minimum [Member] | ||
Leases (Details) [Line Items] | ||
Lease term of contract | 1 year | |
Maximum [Member] | ||
Leases (Details) [Line Items] | ||
Lease term of contract | 8 years |
Leases (Details) - Schedule of
Leases (Details) - Schedule of components lease - USD ($) $ in Thousands | Jul. 31, 2021 | Jul. 31, 2020 | |
Assets | |||
Operating, Right-of-use assets | $ 17,020 | $ 19,916 | |
Finance, Property, plant and equipment, net | [1] | 248 | 385 |
Total lease assets | 17,268 | 20,301 | |
Current: | |||
Operating, Current portion of operating lease liabilities | 3,419 | 4,121 | |
Finance, Finance leases short term | 88 | 201 | |
Non-current: | |||
Operating, Operating lease liabilities, non-current | 14,558 | 16,679 | |
Finance, Other liabilities and finance leases long term | 110 | 161 | |
Total lease liabilities | $ 18,175 | $ 21,162 | |
[1] | Accumulated amortization of finance lease assets was approximately $1,100 and $1,000 as of July 31, 2021 and 2020, respectively. |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of lease cost - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Schedule of lease cost [Abstract] | ||
Operating lease cost | $ 5,474 | $ 5,813 |
Finance lease cost: | ||
Amortization of leased assets | 137 | 251 |
Interest on lease liabilities | 16 | 35 |
Total lease cost | $ 5,627 | $ 6,099 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of lease liability maturity $ in Thousands | Jul. 31, 2021USD ($) | |
Schedule of lease liability maturity [Abstract] | ||
2022, Operating leases | $ 4,326 | |
2022, Finance leases | 88 | |
2022, Total | 4,414 | |
2023, Operating leases | 3,547 | |
2023, Finance leases | 88 | |
2023, Total | 3,635 | |
2024, Operating leases | 3,385 | |
2024, Finance leases | 37 | |
2024, Total | 3,422 | |
2025, Operating leases4 | 3,158 | |
2025, Finance leases | ||
2025, Total | 3,158 | |
2026, Operating leases4 | 3,150 | |
2026, Finance leases | ||
2026, Total | 3,150 | |
Thereafter, Operating leases | 3,224 | |
Thereafter, Finance lease | ||
Thereafter, Total | 3,224 | |
Total lease payments, Operating leases | 20,790 | |
Total lease payments, Finance leases | 213 | |
Total lease payments, Total | 21,003 | |
Less: Interest, Operating leases | (2,813) | [1] |
Less: Interest, Finance leases | (15) | [1] |
Less: Interest, Total | (2,828) | [1] |
Present value of lease liabilities, Operating leases | 17,977 | |
Present value of lease liabilities, Finance leases | 198 | |
Present value of lease liabilities, Total | $ 18,175 | |
[1] | Primarily calculated using the Company’s incremental borrowing rate. |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of lease term and discount rate | Jul. 31, 2021 | Jul. 31, 2020 |
Weighted-average remaining lease term (years): | ||
Weighted-average remaining lease term: Operating leases | 5 years 7 months 6 days | 6 years 2 months 12 days |
Weighted-average remaining lease term: Finance leases | 2 years 6 months | 2 years 8 months 12 days |
Weighted-average discount rate: | ||
Weighted-average discount rate: Operating leases | 4.90% | 4.90% |
Weighted-average discount rate: Finance leases | 7.40% | 8.60% |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Payables and Accruals [Abstract] | |||
Payment advance | $ 2,526 | ||
Accrual, real and personal property taxes, uncertainty | 25% | ||
CMS payment advance | $ 1,847 | ||
Accrued liabilities and other liabilities | $ 300 | $ 300 |
Accrued Liabilities (Details) -
Accrued Liabilities (Details) - Schedule of accrued liabilities - USD ($) $ in Thousands | Jul. 31, 2021 | Jul. 31, 2020 |
Schedule of accrued liabilities [Abstract] | ||
Payroll, benefits and commissions | $ 5,856 | $ 5,227 |
Professional fees | 628 | 710 |
Legal | 2,554 | 2,647 |
Deferred revenue | 2,675 | 2,526 |
Other | 2,588 | 1,723 |
Accrued liabilities | $ 14,301 | $ 12,833 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - Schedule of other current liabilities - USD ($) $ in Thousands | Jul. 31, 2021 | Jul. 31, 2020 |
Schedule of other current liabilities [Abstract] | ||
Finance lease obligations, current portion | $ 81 | $ 255 |
Current portion of mortgage loan | 152 | 136 |
Other current liabilities | $ 233 | $ 391 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 07, 2020 | Jan. 31, 2021 | Jan. 05, 2018 | Sep. 01, 2017 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | Dec. 31, 2014 | Jan. 31, 2011 |
Stockholders’ Equity (Details) [Line Items] | |||||||||
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 | |||||||
Percentage of commission payable on equity offering | 3.00% | ||||||||
Maximum offering price under sales agreement | $ 20,000 | $ 20,000 | |||||||
Shares of common stock settlements (in Shares) | 208,537 | 333,265 | 315,472 | ||||||
Contribution obligation | $ 780 | $ 839 | $ 832 | ||||||
Shares of common stock in payment of accrued bonuses (in Shares) | 332,700 | 332,700 | |||||||
Accrued bonuses | $ 875 | $ 875 | |||||||
Shares of common stock as employee compensation (in Shares) | 4,167 | ||||||||
Common stock as employee compensation | $ 10 | ||||||||
Common stock settlements | $ 832 | ||||||||
Common stock available for grant, description | The amendment and restatement of the Amended and Restated 2011 Plan was for purposes of, among other things, (i) increasing the shares of common stock available for grant under the Amended and Restated 2011 Plan by an additional 4,000,000 shares of common stock bringing the total number of shares available for grant to 9,000,000 shares of common stock and (ii) extending the term of the Amended and Restated 2011 Plan until October 7, 2030. | ||||||||
Common stock granted (in Shares) | 5,066,000 | ||||||||
Outstanding options vested and exercisable | $ 488 | 0 | 159 | ||||||
Intrinsic value of options outstanding | 1,323 | 79 | 955 | ||||||
Intrinsic value of options exercised | $ 38 | 0 | $ 117 | ||||||
Stock options in non-cash transactions (in Shares) | 203,511 | ||||||||
Received net shares of common stock (in Shares) | 23,376 | ||||||||
Performance share, description | During the fiscal year 2020, a former executive forfeited 4,000 and 10,500 PSUs from the fiscal 2019 and fiscal 2020 awards, respectively. During fiscal year 2021, a former executive forfeited 2,000 and 4,000 PSUs from the fiscal 2018 and fiscal 2019 awards, respectively. During fiscal year 2021, 26,000 remaining PSU’s awarded in fiscal 2018 to current executives with a grant date of July 31, 2018 expired as the growth goals were not achieved by July 31, 2021. | ||||||||
Accrued compensation expense | $ 272 | ||||||||
Total restricted stock (in Shares) | 817 | ||||||||
Fair value awards vested | $ 2 | $ 2 | $ 4 | ||||||
Minimum [Member] | |||||||||
Stockholders’ Equity (Details) [Line Items] | |||||||||
Vest over period | 2 years | ||||||||
Maximum [Member] | |||||||||
Stockholders’ Equity (Details) [Line Items] | |||||||||
Vest over period | 4 years | ||||||||
2011 Plan [Member] | |||||||||
Stockholders’ Equity (Details) [Line Items] | |||||||||
Share based compensation arrangement by share based payment award restricted stock units (in Shares) | 3,000,000 | ||||||||
Share-based compensation arrangement by share-based payment award, number of additional shares authorized (in Shares) | 2,000,000 | ||||||||
Common stock available for grants (in Shares) | 5,000,000 | ||||||||
Common Stock [Member] | |||||||||
Stockholders’ Equity (Details) [Line Items] | |||||||||
Authorized common stock that may be issued and sold under sales agreement | $ 19,200 | ||||||||
Securities that may be sold under the agreement | $ 150,000 | ||||||||
Shares of common stock in payment of accrued bonuses (in Shares) | 208,537 | 333,265 | 315,472 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - Schedule of the option activity pursuant to the Company’s stock option plans - $ / shares | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Schedule of the option activity pursuant to the Company’s stock option plans [Abstract] | |||
Options, Outstanding at beginning of year (in Shares) | 2,636,496 | 2,351,040 | 1,882,116 |
Weighted - Average Exercise Price, outstanding at beginning of year | $ 4.05 | $ 4.53 | $ 4.96 |
Options, New Grants (in Shares) | 543,104 | 773,032 | 715,321 |
Weighted - Average Exercise Price, New Grants | $ 2.57 | $ 2.40 | $ 2.81 |
Options, Exercised (in Shares) | (34,667) | (238,230) | |
Weighted - Average Exercise Price, Exercised | $ 2.80 | $ 2.69 | |
Options, Expired or forfeited (in Shares) | (640,370) | (487,576) | (8,167) |
Weighted - Average Exercise Price, Expired or forfeited | $ 3.52 | $ 3.71 | $ 6.55 |
Options, Outstanding at end of year (in Shares) | 2,504,563 | 2,636,496 | 2,351,040 |
Weighted - Average Exercise Price, Outstanding at end of year | $ 3.74 | $ 4.05 | $ 4.53 |
Options, Exercisable at end of year (in Shares) | 1,561,326 | 1,457,162 | 1,342,564 |
Weighted - Average Exercise Price, Exercisable at end of year | $ 4.37 | $ 5.10 | $ 5.16 |
Weighted average fair value of options granted during year | $ 1.27 | $ 1.01 | $ 1.07 |
Stockholders_ Equity (Details_2
Stockholders’ Equity (Details) - Schedule of determine the fair value of options granted - $ / shares | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Stockholders’ Equity (Details) - Schedule of determine the fair value of options granted [Line Items] | |||
Options Granted (in Shares) | 543,104 | 773,032 | 715,321 |
Exercise Price Range (in Dollars per share) | $ 2.57 | $ 2.40 | $ 2.81 |
Term (years) | 5 years | 5 years | 5 years |
FMV of options Granted/Per Share (in Dollars per share) | $ 1.27 | $ 1.01 | $ 1.07 |
Vested Shares at 7/31/2021 (in Shares) | 271,066 | 525,547 | |
Minimum [Member] | |||
Stockholders’ Equity (Details) - Schedule of determine the fair value of options granted [Line Items] | |||
Exercise Price Range (in Dollars per share) | $ 2.14 | $ 2.20 | $ 2.80 |
Vesting Period (years) | 2 years | 2 years | 2 years |
FMV of options Granted/Per Share (in Dollars per share) | $ 1.04 | $ 0.86 | $ 1.06 |
Expected Life (years) | 3 years 3 months | 3 years 3 months | 3 years 3 months |
Expected Volatility % | 69.36% | 53.77% | 48.06% |
Interest Rate % | 0.19% | 0.27% | 2.47% |
Maximum [Member] | |||
Stockholders’ Equity (Details) - Schedule of determine the fair value of options granted [Line Items] | |||
Exercise Price Range (in Dollars per share) | $ 2.63 | $ 3.32 | $ 3.21 |
Vesting Period (years) | 3 years | 3 years | 3 years |
FMV of options Granted/Per Share (in Dollars per share) | $ 1.30 | $ 1.34 | $ 1.23 |
Expected Life (years) | 3 years 6 months | 3 years 6 months | 3 years 6 months |
Expected Volatility % | 73.26% | 66.24% | 50.56% |
Interest Rate % | 0.26% | 1.20% | 2.96% |
Stockholders_ Equity (Details_3
Stockholders’ Equity (Details) - Schedule of share based compensation stock options activity range of exercise prices | 12 Months Ended |
Jul. 31, 2021$ / sharesshares | |
Stock options outstanding [Member] | |
Stockholders’ Equity (Details) - Schedule of share based compensation stock options activity range of exercise prices [Line Items] | |
Shares (in Shares) | shares | 2,504,563 |
Stock Options Exercisable [Member] | |
Stockholders’ Equity (Details) - Schedule of share based compensation stock options activity range of exercise prices [Line Items] | |
Shares (in Shares) | shares | 1,561,326 |
Exercise Price Range $2.14 - $3.32 [Member] | Stock options outstanding [Member] | |
Stockholders’ Equity (Details) - Schedule of share based compensation stock options activity range of exercise prices [Line Items] | |
Range of Exercise prices | $ 2.14 |
Range of Exercise prices | $ 3.32 |
Shares (in Shares) | shares | 1,748,017 |
Weighted-Average Remaining Contractual Life in Years | 3 years 6 months |
Weighted-Average Exercise Price | $ 2.57 |
Exercise Price Range $4.35 - $4.42 [Member] | Stock options outstanding [Member] | |
Stockholders’ Equity (Details) - Schedule of share based compensation stock options activity range of exercise prices [Line Items] | |
Range of Exercise prices | 4.35 |
Range of Exercise prices | $ 4.42 |
Shares (in Shares) | shares | 255,000 |
Weighted-Average Remaining Contractual Life in Years | 2 years |
Weighted-Average Exercise Price | $ 4.42 |
Exercise Price Range $5.52 - $8.36 [Member] | Stock options outstanding [Member] | |
Stockholders’ Equity (Details) - Schedule of share based compensation stock options activity range of exercise prices [Line Items] | |
Range of Exercise prices | 5.52 |
Range of Exercise prices | $ 8.36 |
Shares (in Shares) | shares | 501,546 |
Weighted-Average Remaining Contractual Life in Years | 8 months 12 days |
Weighted-Average Exercise Price | $ 7.15 |
Exercise Price Range $5.52 - $8.36 [Member] | Stock Options Exercisable [Member] | |
Stockholders’ Equity (Details) - Schedule of share based compensation stock options activity range of exercise prices [Line Items] | |
Range of Exercise prices | 5.52 |
Range of Exercise prices | $ 8.36 |
Shares (in Shares) | shares | 503,046 |
Weighted-Average Remaining Contractual Life in Years | 8 months 12 days |
Weighted-Average Exercise Price | $ 7.15 |
Exercise Price Range $2.20 - $3.32 [Member] | Stock Options Exercisable [Member] | |
Stockholders’ Equity (Details) - Schedule of share based compensation stock options activity range of exercise prices [Line Items] | |
Range of Exercise prices | 2.20 |
Range of Exercise prices | $ 3.32 |
Shares (in Shares) | shares | 819,947 |
Weighted-Average Remaining Contractual Life in Years | 2 years 9 months 18 days |
Weighted-Average Exercise Price | $ 2.66 |
Exercise Prices Range $4.35 - $4.42 [Member] | Stock Options Exercisable [Member] | |
Stockholders’ Equity (Details) - Schedule of share based compensation stock options activity range of exercise prices [Line Items] | |
Range of Exercise prices | 4.35 |
Range of Exercise prices | $ 4.42 |
Shares (in Shares) | shares | 238,333 |
Weighted-Average Remaining Contractual Life in Years | 2 years |
Weighted-Average Exercise Price | $ 4.42 |
Stockholders_ Equity (Details_4
Stockholders’ Equity (Details) - Schedule of PSU’s granted and outstanding $ in Thousands | Jan. 03, 2019USD ($)shares | Jan. 03, 2019USD ($)shares |
1/3/2019 [Member] | ||
Stockholders’ Equity (Details) - Schedule of PSU’s granted and outstanding [Line Items] | ||
Total Grant | 80,500 | |
Forfeitures | (14,500) | |
Outstanding | 66,000 | 66,000 |
Fair Market Value At Grant Date (in Dollars) | $ | $ 222 | |
2/25/2020 [Member] | ||
Stockholders’ Equity (Details) - Schedule of PSU’s granted and outstanding [Line Items] | ||
Total Grant | 98,600 | |
Forfeitures | ||
Outstanding | 98,600 | 98,600 |
Fair Market Value At Grant Date (in Dollars) | $ | $ 207 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Employee Benefit Plans [Line Items] | |||
Employees’ contribution | 50.00% | 50.00% | 50.00% |
Employees’ compensation | 10.00% | ||
Employer matched contribution | $ 780 | $ 839 | $ 832 |
Accrued total | $ 433 | $ 481 | $ 475 |
Minimum saving contribution, description | The current required minimum saving contribution is 13% for employees over age 25 and minimum annual investment return is 1.00%. Employees are required to contribute based on a formula and the Company’s Swiss operations make contributions of at least 40% of the employee contribution. |
Employee Benefit Plans (Detai_2
Employee Benefit Plans (Details) - Schedule of employee benefit plans - USD ($) $ in Thousands | 12 Months Ended | |||||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of employee benefit plans [Abstract] | ||||||
Total Assets | $ 2,721 | $ 2,181 | $ 2,064 | |||
Accumulated Benefit Obligation | $ 2,890 | $ 2,401 | $ 2,308 | |||
Funded status | 94.00% | 91.00% | 90.00% | |||
Employer contributions | $ 143 | $ 165 | $ 208 |
Other income (Details)
Other income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2021 | Apr. 30, 2020 | |
Other income (Details) [Line Items] | ||
Other income | $ 7,000 | |
Citibank N.A.,[Member] | ||
Other income (Details) [Line Items] | ||
Received amount | $ 7,000 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Annual increases percentage | 3.00% | ||
Rent expense | $ 1,815 | $ 1,833 | $ 1,849 |
Agreement renew, term | 2 years | ||
Agreement expire, description | The current agreements expire January 2023. | ||
Termination and change in control provisions | $ 2,306 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Thousands | Feb. 05, 2019 | Apr. 30, 2020 | Apr. 16, 2019 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 |
Loss Contingency [Abstract] | ||||||
Contingencies approval, percent | 80.00% | |||||
Legal and related expenses | $ 800 | |||||
Litigation settlement, amount awarded from other party | $ 800 | |||||
Paid settlement | $ 21,000 | |||||
Cash received | $ 19,400 | $ 9,500 | $ 28,925 | |||
Total payments | $ 14,000 |
Segment reporting (Details)
Segment reporting (Details) | 12 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment operates percentage | 100.00% |
Segment reporting (Details) - S
Segment reporting (Details) - Schedule of financial information represents the operating results of the reportable segments - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2019 | |
Clinical Laboratory Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 86,984 | $ 47,964 | $ 51,115 |
Grant income | 1,496 | ||
Total | 49,460 | ||
Cost of revenues | 48,179 | 38,855 | 44,226 |
Research and development | 615 | 1,509 | 31 |
Selling, general and administrative | 26,028 | 23,533 | 24,230 |
Legal and related expenses | 264 | 211 | 159 |
Legal settlements, net | |||
Total operating costs and expenses | 75,086 | 64,108 | 68,646 |
Operating income (loss) | 11,898 | (14,648) | (17,531) |
Interest | (17) | (36) | (64) |
Other | (18) | 45 | 16 |
Foreign exchange gain (loss) | |||
Income (loss) before taxes | 11,863 | (14,639) | (17,579) |
Depreciation and amortization included above | 1,609 | 1,553 | 1,625 |
Capital expenditures | 3,352 | 1,811 | 1,374 |
Life Sciences Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 30,747 | 26,561 | 30,055 |
Grant income | |||
Total | 26,561 | ||
Cost of revenues | 15,975 | 13,396 | 13,696 |
Research and development | 2,559 | 2,190 | 2,257 |
Selling, general and administrative | 11,015 | 10,485 | 11,860 |
Legal and related expenses | 25 | 2 | 27 |
Legal settlements, net | (28,925) | ||
Total operating costs and expenses | 29,574 | 26,073 | (1,085) |
Operating income (loss) | 1,173 | 488 | 31,140 |
Interest | 37 | 56 | 67 |
Other | 7 | 13 | 2 |
Foreign exchange gain (loss) | 270 | 905 | (682) |
Income (loss) before taxes | 1,487 | 1,462 | 30,527 |
Depreciation and amortization included above | 756 | 964 | 1,221 |
Capital expenditures | 752 | 322 | 605 |
Therapeutics [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | |||
Grant income | |||
Total | |||
Cost of revenues | |||
Research and development | 78 | 749 | 887 |
Selling, general and administrative | 62 | ||
Legal and related expenses | |||
Legal settlements, net | |||
Total operating costs and expenses | 140 | 749 | 887 |
Operating income (loss) | (140) | (749) | (887) |
Interest | |||
Other | |||
Foreign exchange gain (loss) | |||
Income (loss) before taxes | (140) | (749) | (887) |
Depreciation and amortization included above | |||
Capital expenditures | |||
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | |||
Grant income | |||
Total | |||
Cost of revenues | |||
Research and development | |||
Selling, general and administrative | 7,800 | 8,942 | 8,175 |
Legal and related expenses | 4,439 | 6,516 | 2,814 |
Legal settlements, net | |||
Total operating costs and expenses | 12,239 | 15,458 | 10,989 |
Operating income (loss) | (12,239) | (15,458) | (10,989) |
Interest | (12) | 434 | 1,053 |
Other | 6,916 | 430 | 364 |
Foreign exchange gain (loss) | |||
Income (loss) before taxes | (5,335) | (14,594) | (9,572) |
Depreciation and amortization included above | 288 | 263 | 190 |
Capital expenditures | 332 | 37 | 6,147 |
Consolidated [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 117,731 | 74,525 | 81,170 |
Grant income | 1,496 | ||
Total | 76,021 | ||
Cost of revenues | 64,154 | 52,251 | 57,922 |
Research and development | 3,252 | 4,448 | 3,175 |
Selling, general and administrative | 44,905 | 42,960 | 44,265 |
Legal and related expenses | 4,728 | 6,729 | 3,000 |
Legal settlements, net | (28,925) | ||
Total operating costs and expenses | 117,039 | 106,388 | 79,437 |
Operating income (loss) | 692 | (30,367) | 1,733 |
Interest | 8 | 454 | 1,056 |
Other | 6,905 | 488 | 382 |
Foreign exchange gain (loss) | 270 | 905 | (682) |
Income (loss) before taxes | 7,875 | (28,520) | 2,489 |
Depreciation and amortization included above | 2,653 | 2,780 | 3,036 |
Capital expenditures | 4,436 | 2,170 | 8,126 |
Selling, General and Administrative Expenses [Member] | Clinical Laboratory Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | 33 | 57 | 147 |
Selling, General and Administrative Expenses [Member] | Life Sciences Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | 102 | 74 | 95 |
Selling, General and Administrative Expenses [Member] | Therapeutics [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | |||
Selling, General and Administrative Expenses [Member] | Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | 679 | 756 | 697 |
Selling, General and Administrative Expenses [Member] | Consolidated [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | 814 | 887 | 939 |
Cost of Sales [Member] | Clinical Laboratory Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | 93 | 46 | |
Cost of Sales [Member] | Life Sciences Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | |||
Cost of Sales [Member] | Therapeutics [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | |||
Cost of Sales [Member] | Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | |||
Cost of Sales [Member] | Consolidated [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | 93 | 46 | |
Total [Member] | Clinical Laboratory Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | 126 | 103 | 147 |
Total [Member] | Life Sciences Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | 102 | 74 | 95 |
Total [Member] | Therapeutics [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | |||
Total [Member] | Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | 679 | 756 | 697 |
Total [Member] | Consolidated [Member] | |||
Segment Reporting Information [Line Items] | |||
Share-based compensation | $ 907 | $ 933 | $ 939 |
Segment reporting (Details) -_2
Segment reporting (Details) - Schedule of geographic financial information - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Aug. 31, 2019 | Jul. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 117,731 | $ 76,021 | $ 81,170 | $ 81,170 |
Long-lived assets | 41,301 | 42,388 | ||
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 102,602 | 64,284 | 68,081 | |
Long-lived assets | 41,249 | 41,946 | ||
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 10,386 | 7,720 | 8,551 | |
Long-lived assets | 52 | 442 | ||
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 4,744 | $ 4,017 | $ 4,538 |
Segment reporting (Details) -_3
Segment reporting (Details) - Schedule of revenues attributable to customers located in the United States and foreign countries - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Aug. 31, 2019 | |
Segment reporting (Details) - Schedule of revenues attributable to customers located in the United States and foreign countries [Line Items] | |||
Revenues | $ 30,747 | $ 26,561 | $ 30,055 |
United States [Member] | |||
Segment reporting (Details) - Schedule of revenues attributable to customers located in the United States and foreign countries [Line Items] | |||
Revenues | 15,617 | 14,824 | 16,966 |
Foreign Countries [Member] | |||
Segment reporting (Details) - Schedule of revenues attributable to customers located in the United States and foreign countries [Line Items] | |||
Revenues | $ 15,130 | $ 11,737 | $ 13,089 |
Schedule II Valuation and Qua_3
Schedule II Valuation and Qualifying Accounts (Details) - Schedule of II valuation and qualifying accounts - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Allowance for doubtful accounts receivable [Member] | |||||
Schedule II Valuation and Qualifying Accounts (Details) - Schedule of II valuation and qualifying accounts [Line Items] | |||||
Balance at Beginning of Year | $ 194 | $ 166 | $ 145 | ||
Charged (credited) to costs and expenses | 5 | 28 | 42 | ||
Deductions | 19 | [1] | 21 | [1] | |
Balance at end of Year | 180 | 194 | 166 | ||
Deferred tax valuation allowance [Member] | |||||
Schedule II Valuation and Qualifying Accounts (Details) - Schedule of II valuation and qualifying accounts [Line Items] | |||||
Balance at Beginning of Year | 30,077 | 23,527 | 24,471 | ||
Charged (credited) to costs and expenses | (203) | 6,550 | (944) | ||
Deductions | |||||
Balance at end of Year | $ 29,874 | $ 30,077 | $ 23,527 | ||
[1] | Write-off of uncollectible accounts receivable. |