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Segment Information (as Restated)
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION (as restated)

17. SEGMENT INFORMATION (as restated)

 

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 Mastitis segment includes our products, CMT and Re-Tain®. 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 June 30, 2022 
   Scours   Mastitis   Other   Total 
Product sales  $3,823,466   $37,834   $72   $3,861,372 
Costs of goods sold   2,119,194    31,848    3,002    2,154,044 
Gross margin   1,704,272    5,986    (2,930)   1,707,328 
                     
OPERATING EXPENSES:                    
Product development expenses   8,188    1,102,939    27,640    1,138,767 
Sales and marketing expenses   339,570    319,669    
—
    659,239 
Administrative expenses   
—
    
—
    528,329    528,329 
Operating expenses   347,758    1,422,608    555,969    2,326,335 
                     
NET OPERATING INCOME (LOSS)  $1,356,514   $(1,416,622)  $(558,899)  $(619,007)

 

   During the Three-Month Period Ended June 30, 2021 
   Scours   Mastitis   Other   Total 
Product sales  $4,472,947   $29,211   $39,652   $4,541,810 
Costs of goods sold   2,435,705    12,072    19,712    2,467,489 
Gross margin   2,037,242    17,139    19,940    2,074,321 
                     
OPERATING EXPENSES:                    
Product development expenses   48    868,221    131,838    1,000,107 
Sales and marketing expenses   352,510    84,472    
—
    436,982 
Administrative expenses   
—
    
—
    421,724    421,724 
Operating expenses   352,558    952,693    553,562    1,858,813 
                     
NET OPERATING INCOME (LOSS)  $1,684,684   $(935,554)  $(533,622)  $215,508 

 

   Scours   Mastitis   Total 
Total Assets as of June 30, 2022  $23,923,884   $22,059,965   $45,983,849 
Total Assets as of June 30, 2021  $21,751,882   $21,977,761   $43,729,643 
Depreciation and amortization expense during the three-month period ended June 30, 2022  $315,557   $315,742   $631,299 
Depreciation and amortization expense during the three-month period ended June 30, 2021  $263,118   $361,145   $624,263 
Capital Expenditures during the three-month period ended June 30, 2022  $664,415   $278,875   $943,290 
Capital Expenditures during the three-month period ended June 30, 2021  $284,485   $594,854   $879,339 

 

   During the Six-Month Period Ended June 30, 2022 
   Scours   Mastitis   Other   Total 
Product sales  $9,786,341   $73,260   $1,455   $9,861,056 
Costs of goods sold   4,971,523    58,650    20,332    5,050,505 
Gross margin   4,814,818    14,610    (18,877)   4,810,551 
                     
OPERATING EXPENSES:                    
Product development expenses   16,596    2,085,075    73,031    2,174,702 
Sales and marketing expenses   758,238    712,502    —    1,470,740 
Administrative expenses   —    —    1,213,508    1,213,508 
Operating expenses   774,834    2,797,577    1,286,539    4,858,950 
                     
NET OPERATING INCOME (LOSS)  $4,039,984   $(2,782,967)  ($1,305,416)  $(48,399)

 

   During the Six-Month Period Ended June 30, 2021 
   Scours   Mastitis   Other   Total 
Product sales  $8,496,419   $67,240   $85,297   $8,648,956 
Costs of goods sold   4,887,864    48,050    36,532    4,972,446 
Gross margin   3,608,555    19,190    48,765    3,676,510 
                     
OPERATING EXPENSES:                    
Product development expenses   7,532    1,836,292    187,347    2,031,171 
Sales and marketing expenses   783,664    173,916    —    957,580 
Administrative expenses   —    —    846,876    846,876 
Operating expenses   791,196    2,010,208    1,034,223    3,835,627 
                     
NET OPERATING INCOME (LOSS)  $2,817,359   $(1,991,018)  $(985,458)  $(159,117)

 

   Scours   Mastitis   Total 
Total Assets as of June 30, 2022  $23,923,884   $22,059,965   $45,983,849 
Total Assets as of June 30, 2021  $21,751,882   $21,977,761   $43,729,643 
Depreciation and amortization expense during the six-month period ended June 30, 2022  $624,077   $630,750   $1,254,827 
Depreciation and amortization expense during the six-month period ended June 30, 2021  $527,312   $718,382   $1,245,694 
Capital Expenditures during the six-month period ended June 30, 2022  $1,404,882   $345,904   $1,750,786 
Capital Expenditures during the six-month period ended June 30, 2021  $633,801   $594,854   $1,228,655 

 

   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