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Segment Information
 12 Months Ended
Dec. 31, 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 a bacteriocin called Nisin. 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 Year Ended December 31, 2022 
   Scours   Mastitis   Other   Total 
Product sales  $18,411,949   $154,558   $1,455   $18,567,962 
Costs of goods sold   10,754,189    136,347    28,647    10,919,183 
Gross margin   7,657,760    18,211    (27,192)   7,648,779 
                     
Product development expenses   66,346    4,317,921    109,605    4,493,872 
Sales and marketing expenses   1,871,926    1,318,107    
—
    3,190,033 
Administrative expenses   
—
    
—
    2,263,817    2,263,817 
Operating expenses   1,938,272    5,636,028    2,373,422    9,947,722 
                     
NET OPERATING INCOME (LOSS)  $5,719,488   $(5,617,817)  $(2,400,614)  $(2,298,943)

 

   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 
                     
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 

 

   Scours   Mastitis   Other   Total 
Total Assets as of December 31, 2022  $20,539,523   $18,315,492   $6,005,634   $44,860,649 
Total Assets as of December 31, 2021  $14,860,769   $19,122,265   $10,482,654   $44,465,688 
Depreciation and amortization expense during the year ended
December 31, 2022		  $1,169,011   $1,263,318   $62,912   $2,495,241 
Depreciation and amortization expense during the year ended
December 31, 2021		  $1,032,735   $1,374,171   $62,075   $2,468,981 
Capital Expenditures during the year ended December 31, 2022  $3,513,336   $414,486   $47,452   $3,975,274 
Capital Expenditures during the year ended December 31, 2021  $1,632,855   $975,794   $—   $2,608,649