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Segment Information
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION

17. SEGMENT INFORMATION

 

Our business operations (being the development, acquisition, manufacture and sale of products that improve the health and productivity of dairy and beef cattle) are described in Note 1. Pursuant to Codification Topic 280, Segment Reporting, we operate in the following two reportable business segments: i) Scours and ii) Mastitis. The Scours segment consists of the First Defense® product line. The core technology underlying the Scours segment is derived around polyclonal antibodies. The Mastitis segment includes our products, CMT and Re-Tain®. Re-Tain® is projected to be the driver of this segment when approved for sale. The core technology underlying the Mastitis segment is derived around polypeptide antimicrobials. The category we define as “Other” includes unallocated administrative and overhead expenses and other products. The significant accounting policies of these segments are described in Note 2. Product sales are the primary factor we use in determining our reportable segments. The governing regulatory authority (USDA for First Defense® or FDA for Re-Tain®) is also a factor in determining our reportable segments. Management monitors and evaluates segment performance from sales to net operating income (loss) closely. We are not organized by geographic region. No segments have been aggregated. The revenues and expenses allocated to each segment are in some cases direct and in other cases involve reasonable and consistent estimations by management. Each operating segment is defined as the component of our business for which financial information is available and evaluated regularly by our chief operating decision-maker in deciding how to allocate resources and in assessing performance. Our chief operating decision-maker is our President and CEO.

 

   During the Three-Month Period Ended September 30, 2022 
   Scours   Mastitis   Other   Total 
Product sales  $4,751,049   $44,976   $
—
   $4,796,025 
Costs of goods sold   2,898,897    45,441    5,636    2,949,974 
Gross margin   1,852,152    (465)   (5,636)   1,846,051 
                     
OPERATING EXPENSES:                    
Product development expenses   6,421    1,246,243    17,097    1,269,761 
Sales and marketing expenses   369,439    357,299    
—
    726,738 
Administrative expenses   
—
    
—
    466,342    466,342 
Operating expenses   375,860    1,603,542    483,439    2,462,841 
                     
NET OPERATING INCOME (LOSS)  $1,476,292   $(1,604,007)  $(489,075)  $(616,790)

 

   During the Three-Month Period Ended September 30, 2021 
   Scours   Mastitis   Other   Total 
Product sales  $5,033,428   $35,736   $81,009   $5,150,173 
Costs of goods sold   2,671,310    25,814    34,345    2,731,469 
Gross margin   2,362,118    9,922    46,664    2,418,704 
                     
OPERATING EXPENSES:                    
Product development expenses   17,326    1,001,354    28,818    1,047,498 
Sales and marketing expenses   496,010    160,408    
—
    656,418 
Administrative expenses   
—
    
—
    443,698    443,698 
Operating expenses   513,336    1,161,762    472,516    2,147,614 
                     
NET OPERATING INCOME (LOSS)  $1,848,782   $(1,151,840)  $(425,852)  $271,090 

 

   Scours   Mastitis   Other   Total 
Total Assets as of September 30, 2022  $18,678,408   $18,634,760   $9,088,393   $46,401,561 
Total Assets as of September 30, 2021  $14,070,880   $19,310,110   $10,850,473   $44,231,463 
Depreciation and amortization expense during the three-month period ended September 30, 2022  $302,235   $316,317   $15,688   $634,240 
Depreciation and amortization expense during the three-month period ended September 30, 2021  $259,993   $344,554   $15,579   $620,126 
Capital Expenditures during the three-month period ended September 30, 2022  $665,825   $21,032   $47,452   $734,309 
Capital Expenditures during the three-month period ended September 30, 2021  $477,844   $193,561   $3,995   $675,400 

 

   During the Nine-Month Period Ended September 30, 2022 
   Scours   Mastitis   Other   Total 
Product sales  $14,537,390   $118,237   $1,455   $14,657,082 
Costs of goods sold   7,870,420    104,092    25,967    8,000,479 
Gross margin   6,666,970    14,145    (24,512)   6,656,603 
                     
OPERATING EXPENSES:                    
Product development expenses   23,025    3,331,311    90,128    3,444,464 
Sales and marketing expenses   1,127,676    1,069,801    
—
    2,197,477 
Administrative expenses   
—
    
—
    1,679,851    1,679,851 
Operating expenses   1,150,701    4,401,112    1,769,979    7,321,792 
                     
NET OPERATING INCOME (LOSS)  $5,516,269   $(4,386,967)  $(1,794,491)  $(665,189)

 

   During the Nine-Month Period Ended September 30, 2021 
   Scours   Mastitis   Other   Total 
Product sales  $13,529,846   $102,977   $166,306   $13,799,129 
Costs of goods sold   7,559,174    73,864    70,877    7,703,915 
Gross margin   5,970,672    29,113    95,429    6,095,214 
                     
OPERATING EXPENSES:                    
Product development expenses   24,892    2,837,830    215,948    3,078,670 
Sales and marketing expenses   1,279,673    334,324    
—
    1,613,997 
Administrative expenses   
—
    
—
    1,290,574    1,290,574 
Operating expenses   1,304,565    3,172,154    1,506,522    5,983,241 
                     
NET OPERATING INCOME (LOSS)  $4,666,107   $(3,143,041)  $(1,411,093)  $111,973 

 

   Scours   Mastitis   Other   Total 
Total Assets as of September 30, 2022  $18,678,408   $18,634,760   $9,088,393   $46,401,561 
Total Assets as of September 30, 2021  $14,070,880   $19,310,110   $10,850,473   $44,231,463 
Depreciation and amortization expense during the nine-month period ended September 30, 2022  $895,045   $946,878   $47,144   $1,889,067 
Depreciation and amortization expense during the nine-month period ended September 30, 2021  $756,714   $1,062,703   $46,403   $1,865,820 
Capital Expenditures during the nine-month period ended September 30, 2022  $2,050,107   $387,536   $47,452   $2,485,095 
Capital Expenditures during the nine-month period ended September 30, 2021  $1,055,412   $840,675   $7,968   $1,904,055 

 

   During the Year Ended December 31, 2021 
   Scours   Mastitis   Other   Total 
Product sales  $18,933,092   $143,280   $166,597   $19,242,969 
Costs of goods sold   10,411,936    99,957    75,147    10,587,040 
Gross margin   8,521,156    43,323    91,450    8,655,929 
                     
OPERATING EXPENSES:                    
Product development expenses   25,374    3,887,781    255,363    4,168,518 
Sales and marketing expenses   1,942,391    561,535    
—
    2,503,926 
Administrative expenses   
—
    
—
    1,726,100    1,726,100 
Operating expenses   1,967,765    4,449,316    1,981,463    8,398,544 
                     
NET OPERATING INCOME (LOSS)  $6,553,391   $(4,405,993)  $(1,890,013)  $257,385 

 

   During the Year Ended December 31, 2020 
   Scours   Mastitis   Other   Total 
Product sales  $15,072,446   $136,210   $133,548   $15,342,204 
Costs of goods sold   8,285,073    119,329    74,976    8,479,378 
Gross margin   6,787,373    16,881    58,572    6,862,826 
                     
OPERATING EXPENSES:                    
Product development expenses   106,393    4,022,712    225,522    4,354,627 
Sales and marketing expenses   2,119,289    48,610    
—
    2,167,899 
Administrative expenses   
—
    
—
    1,720,653    1,720,653 
Operating expenses   2,225,682    4,071,322    1,946,175    8,243,179 
                     
NET OPERATING INCOME (LOSS)  $4,561,691   $(4,054,441)  $(1,887,603)  $(1,380,353)

 

   Scours   Mastitis   Total 
Total Assets as of December 31, 2021  $22,442,944   $22,022,744   $44,465,688 
Total Assets as of December 31, 2020  $18,416,157   $21,933,437   $40,349,594 
Depreciation and amortization expense during the year ended December 31, 2021  $1,094,810   $1,374,171   $2,468,981 
Depreciation and amortization expense during the year ended December 31, 2020  $1,002,360   $1,447,647   $2,450,007 
Capital Expenditures during the year ended December 31, 2021  $1,655,866   $952,783   $2,608,649 
Capital Expenditures during the year ended December 31, 2020  $3,456,307   $616,232   $4,072,539