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Segment Information
 3 Months Ended
Mar. 31, 2023
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 Three-Month Period Ended March 31, 2023

 
   Scours   Mastitis   Other   Total 
Product sales  $3,411,232   $35,295   $—   $3,446,527 
Costs of goods sold   3,103,958    41,794    —    3,145,752 
Gross margin   307,274    (6,499)   —    300,775 
                     
Product development expenses   291    1,076,344    33,733    1,110,368 
Sales and marketing expenses   690,544    188,883    —    879,427 
Administrative expenses   —    —    567,019    567,019 
   Operating expenses   690,835    1,265,227    600,752    2,556,814 
                     
NET OPERATING LOSS  $(383,561)  $(1,271,726)  $(600,752)  $(2,256,039)
                     

 

  

During the Three-Month Period Ended March 31, 2022

 
   Scours   Mastitis   Other   Total 
Product sales  $5,962,875   $35,427   $1,382   $5,999,684 
Costs of goods sold   2,852,329    26,803    17,329    2,896,461 
Gross margin   3,110,546    8,624    (15,947)   3,103,223 
                     
Product development expenses   8,416    982,129    45,390    1,035,935 
Sales and marketing expenses   418,667    392,833    —    811,500 
Administrative expenses   —    —    685,179    685,179 
   Operating expenses   427,083    1,374,962    730,569    2,532,614 
                     
NET OPERATING INCOME (LOSS)  $2,683,463   $(1,366,338)  $(746,516)  $570,609 

 

   Scours   Mastitis   Other   Total 
Total Assets as of March 31, 2023  $21,519,208   $18,253,991   $3,349,988   $43,123,187 
Total Assets as of March 31, 2022  $15,654,608   $18,951,158   $12,093,730   $46,699,496 
Depreciation and amortization expense during the three-month period ended March 31, 2023  $323,257   $317,624   $17,948   $658,829 
Depreciation and amortization expense during the three-month period ended March 31, 2022  $292,792   $315,008   $15,728   $623,528 
Capital Expenditures during the three-month period ended March 31, 2023  $571,736   $110,430   $—   $682,166 
Capital Expenditures during the three-month period ended March 31, 2022  $726,721   $80,775   $—   $807,496 

 

   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