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Segment Information
 6 Months Ended
Jun. 30, 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 June 30, 2024 
   Scours   Mastitis   Other   Total 
Product sales  $5,430,069   $42,821   $
—
   $5,472,890 
Costs of goods sold   4,198,849    43,555    
—
    4,242,404 
Gross margin   1,231,220    (734)   
—
    1,230,486 
                     
Product development expense   65,598    928,531    36,373    1,030,502 
Sales and marketing expenses   855,513    129,444    
—
    984,957 
Administrative expenses   
—
    
—
    601,634    601,634 
Operating expenses   921,111    1,057,975    638,007    2,617,093 
                     
NET OPERATING INCOME (LOSS)  $310,109   $(1,058,709)  $(638,007)  $(1,386,607)

 

  

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)

 

   Scours    Mastitis   Other   Total 
Total Assets as of June 30, 2024  $23,240,545   $17,107,377   $1,507,536   $41,855,458 
Total Assets as of June 30, 2023  $23,910,633   $18,374,662   $1,721,773   $44,007,068 
Depreciation and amortization expense during the three-month period ended June 30, 2024  $342,362   $319,727   $19,676   $681,765 
Depreciation and amortization expense during the three-month period ended June 30, 2023  $341,979   $323,661   $21,074   $686,714 
Capital Expenditures during the three-month period ended June 30, 2024  $93,338   $17,403   $
—
   $110,741 
Capital Expenditures during the three-month period ended June 30, 2023  $124,911   $583,577   $
—
   $708,488 

   During the Six-Month Period Ended June 30, 2024 
   Scours   Mastitis   Other   Total 
Product sales  $12,650,710   $79,757   $
—
   $12,730,467 
Costs of goods sold   9,122,397    82,225    
—
    9,204,622 
Gross margin   3,528,313    (2,468)   
—
    3,525,845 
                     
Product development expense   95,093    2,131,473    66,487    2,293,053 
Sales and marketing expenses   1,525,252    260,628    
—
    1,785,880 
Administrative expenses   
—
    
—
    1,133,572    1,133,572 
Operating expenses   1,620,345    2,392,101    1,200,059    5,212,505 
                     
NET OPERATING INCOME (LOSS)  $1,907,968   $(2,394,569)  $(1,200,059)  $(1,686,660)

 

   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)

 

   Scours   Mastitis   Other   Total 
Total Assets as of June 30, 2024  $23,240,545   $17,107,377   $1,507,536   $41,855,458 
Total Assets as of June 30, 2023  $23,910,633   $18,374,662   $1,721,773   $44,007,068 
Depreciation and amortization expense during the six-month period ended June 30, 2024  $681,281   $638,445   $39,539   $1,359,265 
Depreciation and amortization expense during the six-month period ended June 30, 2023  $665,236   $641,285   $39,022   $1,345,543 
Capital Expenditures during the six-month period ended June 30, 2024  $132,812   $48,285   $
—
   $181,097 
Capital Expenditures during the six-month period ended June 30, 2023  $696,647   $694,007   $
—
   $1,390,654 

 

   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