Segment reporting | Note 11 – Segment reporting The Company has three reportable segments: Products, Clinical Services and Therapeutics. The Company’s Products segment develops, manufactures, and markets products to research and pharmaceutical customers. The Clinical Services segment provides diagnostic services to the health care community. The Company’s Therapeutics segment conducts research and development activities for therapeutic drug candidates. The Company evaluates segment performance based on segment income (loss) before taxes. Costs excluded from segment income (loss) before taxes and reported as “Other” consist of corporate general and administrative costs which are not allocable to the three reportable segments. All intersegment activities are eliminated. Legal and related expenses incurred to defend the Company’s intellectual property, which may result in settlements recognized in another segment and other general corporate matters are considered a component of the Other segment. Legal and related expenses specific to other segments’ activities are allocated to those segments. Management of the Company assesses assets on a consolidated basis only and therefore, assets by reportable segment have not been included in the reportable segments below. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The following financial information represents the operating results of the reportable segments of the Company: Three months ended April 30, 2022 Clinical Products Therapeutics Other Consolidated Revenues $ 18,630 $ 7,592 — — $ 26,222 Operating costs and expenses: Cost of revenues 11,180 4,869 — — 16,049 Research and development 666 458 9 — 1,133 Selling, general and administrative 6,756 2,786 — 1,900 11,442 Legal fee expense 12 10 — 712 734 Total operating costs and expenses 18,614 8,123 9 2,612 29,358 Operating income (loss) 16 (531 ) (9 ) (2,612 ) (3,136 ) Other income (expense): Interest, net (2 ) 10 — 46 54 Other 15 (2 ) — (729 ) (716 ) Foreign exchange loss — (1,056 ) — — (1,056 ) Net income (loss) $ 29 $ (1,579 ) $ (9 ) $ (3,295 ) $ (4,854 ) Depreciation and amortization included above $ 430 224 — 78 732 Share-based compensation included in above: Selling, general and administrative 38 1 — 119 158 Cost of revenues 4 — — — 4 Total $ 42 1 — 119 162 Capital expenditures $ 202 572 — 82 856 Three months ended April 30, 2021 Clinical Products Therapeutics Other Consolidated Revenues $ 25,018 $ 7,779 — — $ 32,797 Operating costs and expenses: Cost of revenues 12,733 4,018 — — 16,751 Research and development 173 643 $ 20 — 836 Selling, general and administrative 7,029 2,810 17 $ 2,226 12,082 Legal fee expenses 95 10 — 956 1,061 Total operating costs and expenses 20,030 7,481 37 3,182 30,730 Operating income (loss) 4,988 298 (37 ) (3,182 ) 2,067 Other income (expense): Interest, net (4 ) 11 — 53 60 Other 1 2 — (91 ) (88 ) Foreign exchange loss — (33 ) — — (33 ) Net income (loss) $ 4,985 $ 278 $ (37 ) $ (3,220 ) $ 2,006 Depreciation and amortization included above $ 399 $ 208 $ — $ 66 $ 673 Share-based compensation included in above: Selling, general and administrative 9 41 — 208 258 Cost of revenues 39 — — — 39 Total $ 48 $ 41 $ — $ 208 $ 297 Capital expenditures $ 1,544 $ 180 $ — $ 23 $ 1,747 Nine months ended April 30, 2022 Clinical Products Therapeutics Other Consolidated Revenues – Services and Products $ 62,045 $ 24,742 — — $ 86,787 Operating costs and expenses: Cost of revenues 34,969 14,191 — — 49,160 Research and development 762 1,901 $ 34 — 2,697 Selling, general and administrative 19,568 8,920 — $ 8,472 36,960 Legal and related expenses 217 23 — 4,621 4,861 Total operating costs and expenses 55,516 25,035 34 13,093 93,678 Operating income (loss) 6,529 (293 ) (34 ) (13,093 ) (6,891 ) Other income (expense): Interest, net (7 ) 28 — 140 161 Other 69 3 — (1,283 ) (1,211 ) Foreign exchange (loss) (1,887 ) — — (1,887 ) Net income (loss) $ 6,591 $ (2,149 ) $ (34 ) $ (14,236 ) $ (9,828 ) Depreciation and amortization included above $ 1,286 $ 626 $ — $ 226 $ 2,138 Share-based compensation included in above: Selling, general and administrative 74 2 — 961 1,037 Cost of revenues 20 — — — 20 Total $ 94 $ 2 $ — $ 961 $ 1,057 Capital expenditures $ 795 $ 1,788 $ — $ 520 $ 3,103 Nine months ended April 30, 2021 Clinical Products Therapeutics Other Consolidated Revenues – Services and Products $ 70,229 $ 22,689 — — $ 92,918 Operating costs and expenses: Cost of revenues 37,436 11,718 — — 49,154 Research and development 454 1,868 $ 66 — 2,388 Selling, general and administrative 19,552 7,848 50 $ 5,659 33,109 Legal and related expenses 191 16 — 3,786 3,993 Total operating costs and expenses 57,633 21,450 116 9,445 88,644 Operating income (loss) 12,596 1,239 (116 ) (9,445 ) 4,274 Other income (expense): Interest (14 ) 29 — (55 ) (40 ) Other 30 6 — (91 ) (55 ) Foreign exchange gain 428 — — 428 Net income (loss) $ 12,612 $ 1,702 $ (116 ) $ (9,591 ) $ 4,607 Depreciation and amortization included above $ 1,189 $ 581 $ — $ 198 $ 1,968 Share-based compensation included in above: Selling, general and administrative 28 73 — 473 574 Cost of revenues 66 — — — 66 Total $ 94 $ 73 $ — $ 473 $ 640 Capital expenditures $ 2,425 $ 378 $ — $ 67 $ 2,870 |