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Segment Information
 6 Months Ended
Jun. 30, 2023
Segment Information [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 June 30, 2023

 
   Scours   Mastitis   Other   Total 
Product sales  $3,482,259   $50,422   $
—
   $3,532,681 
Costs of goods sold   2,453,169    35,624    
—
    2,488,793 
Gross margin   1,029,090    14,798    
—
    1,043,888 
                     
Product development expenses   2,252    1,061,383    35,903    1,099,538 
Sales and marketing expenses   558,179    161,610    
—
    719,789 
Administrative expenses   
—
    
—
    529,056    529,056 
Operating expenses   560,431    1,222,993    564,959    2,348,383 
NET OPERATING INCOME (LOSS)  $468,659   $(1,208,195)  $(564,959)  $(1,304,495)

 

 

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 
                     
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)

 

   Scours   Mastitis   Other   Total 
Total Assets as of June 30, 2023  $23,910,633   $18,374,662   $1,721,773   $44,007,068 
Total Assets as of June 30, 2022  $15,897,359   $18,833,556   $11,252,934   $45,983,849 
Depreciation and amortization expense during the three-month period ended June 30, 2023  $341,979   $323,661   $21,074   $686,714 
Depreciation and amortization expense during the three-month period ended June 30, 2022  $299,829   $315,742   $15,728   $631,299 
Capital Expenditures during the three-month period ended June 30, 2023  $124,911   $583,577   $
—
   $708,488 
Capital Expenditures during the three-month period ended June 30, 2022  $657,561   $285,729   $
—
   $943,290 

 

 

  

During the Six-Month Period Ended June 30, 2023

 
   Scours   Mastitis   Other   Total 
Product sales  $6,893,491   $85,716   $
—
   $6,979,207 
Costs of goods sold   5,557,127    77,417    
—
    5,634,544 
Gross margin   1,336,364    8,299    
—
    1,344,663 
                     
Product development expenses   2,543    2,137,728    69,636    2,209,907 
Sales and marketing expenses   1,248,723    350,493    
—
    1,599,216 
Administrative expenses   
—
    
—
    1,096,074    1,096,074 
Operating expenses   1,251,266    2,488,221    1,165,710    4,905,197 
NET OPERATING INCOME (LOSS)  $85,098   $(2,479,922)  $(1,165,710)  $(3,560,534)

 

  

During the Six-Month Period Ended June 30, 2022

 
   Scours   Mastitis   Other   Total 
Product sales  $9,786,341   $73,261   $1,454   $9,861,056 
Costs of goods sold   4,971,523    58,651    20,331    5,050,505 
Gross margin   4,814,818    14,610    (18,877)   4,810,551 
                     
Product development expenses   16,604    2,085,068    73,030    2,174,702 
Sales and marketing expenses   758,238    712,502    
—
    1,470,740 
Administrative expenses   
—
    
—
    1,213,508    1,213,508 
Operating expenses   774,842    2,797,570    1,286,538    4,858,950 
NET OPERATING INCOME (LOSS)  $4,039,976   $(2,782,960)  $(1,305,415)  $(48,399)

 

   Scours   Mastitis   Other   Total 
Total Assets as of June 30, 2023  $23,910,633   $18,374,662   $1,721,773   $44,007,068 
Total Assets as of June 30, 2022  $15,897,359   $18,833,556   $11,252,934   $45,983,849 
Depreciation and amortization expense during the six-month period ended June 30, 2023  $665,236   $641,285   $39,022   $1,345,543 
Depreciation and amortization expense during the six-month period ended June 30, 2022  $592,621   $630,750   $31,456   $1,254,827 
Capital Expenditures during the six-month period ended June 30, 2023  $696,647   $694,007   $
—
   $1,390,654 
Capital Expenditures during the six-month period ended June 30, 2022  $1,384,282   $366,504   $
—
   $1,750,786 

 

   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