XML 34 R23.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Segment Information
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024 
   Scours   Mastitis   Other   Total 
Product sales  $7,220,641   $36,936   $
—
   $7,257,577 
Costs of goods sold   4,923,548    38,670    
—
    4,962,218 
Gross margin   2,297,093    (1,734)   
—
    2,295,359 
                     
Product development expense   29,495    1,202,941    30,114    1,262,550 
Sales and marketing expenses   669,739    131,184    
—
    800,923 
Administrative expenses   
—
    
—
    531,938    531,938 
Operating expenses   699,234    1,334,125    562,052    2,595,411 
                     
NET OPERATING INCOME (LOSS)  $1,597,859   $(1,335,859)  $(562,052)  $(300,052)

 

   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)

 

   Scours   Mastitis   Other   Total 
Total Assets as of March 31, 2024  $24,160,698   $17,550,907   $1,339,443   $43,051,048 
Total Assets as of March 31, 2023  $21,519,208   $18,253,991   $3,349,988   $43,123,187 
Depreciation and amortization expense during the three-month period ended March 31, 2024  $338,919   $318,718   $19,863   $677,500 
Depreciation and amortization expense during the three-month period ended March 31, 2023  $323,257   $317,624   $17,948   $658,829 
Capital Expenditures during the three-month period ended March 31, 2024  $39,474   $30,882   $
—
   $70,356 
Capital Expenditures during the three-month period ended March 31, 2023  $571,736   $110,430   $
—
   $682,166 

 

   During the Year Ended December 31, 2023 
   Scours   Mastitis   Other   Total 
Product sales  $17,293,933   $177,736   $
—
   $17,471,669 
Costs of goods sold   13,453,514    148,871    
—
    13,602,385 
Gross margin   3,840,419    28,865    
—
    3,869,284 
                     
Product development expense   11,103    4,242,329    141,420    4,394,852 
Sales and marketing expenses   2,447,137    641,078    
—
    3,088,215 
Administrative expenses   
—
    
—
    2,134,295    2,134,295 
Operating expenses   2,458,240    4,883,407    2,275,715    9,617,362 
                     
NET OPERATING INCOME (LOSS)  $1,382,179   $(4,854,542)  $(2,275,715)  $(5,748,078)

 

   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)

 

   Scours   Mastitis   Other   Total 
Total Assets as of December 31, 2023  $24,735,413   $17,827,839   $1,244,850   $43,808,102 
Total Assets as of December 31, 2022  $20,539,523   $18,315,492   $6,005,634   $44,860,649 
Depreciation and amortization expense during the year ended December 31, 2023  $1,365,988   $1,287,600   $86,032   $2,739,620 
Depreciation and amortization expense during the year ended December 31, 2022  $1,169,011   $1,263,318   $62,912   $2,495,241 
Capital Expenditures during the year ended December 31, 2023  $1,096,819   $795,694   $
—
   $1,892,513 
Capital Expenditures during the year ended December 31, 2022  $3,513,336   $414,486   $47,452   $3,975,274