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Note 16 - Segment Information
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

16. SEGMENT INFORMATION

 

Our business operations (being the development, 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 focused on polyclonal antibodies derived from hyperimmunized bovine colostrum. The Mastitis segment includes our products, CMT and Re-Tain®. Re-Tain® is projected to be the driver of this segment upon approval for sale. The core technology underlying the Mastitis segment is focused on 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. 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 September 30, 2025

 
  

Scours

  

Mastitis

  

Other

  

Total

 

Product sales

 $5,444,619  $61,503  $—  $5,506,122 

Costs of goods sold

  3,100,872   42,152   —   3,143,024 

Gross margin

  2,343,747   19,351   —   2,363,098 
                 

Sales and marketing expenses

  837,141   82,150   —   919,291 

Product development expenses

  88,894   575,642   29,775   694,311 

Administrative expenses

  —   —   729,421   729,421 

Operating expenses

  926,035   657,792   759,196   2,343,023 
                 

NET OPERATING INCOME (LOSS)

 $1,417,712  $(638,441) $(759,196) $20,075 

 

  

During the Three-Month

 
  

Period Ended September 30, 2024

 
  

Scours

  

Mastitis

  

Other

  

Total

 

Product sales

 $5,951,344  $60,229  $—  $6,011,573 

Costs of goods sold

  4,364,950   63,069   —   4,428,019 

Gross margin

  1,586,394   (2,840)  —   1,583,554 
                 

Sales and marketing expenses

  699,584   144,461   —   844,045 

Product development expenses

  59,140   690,052   36,944   786,136 

Administrative expenses

  —   —   528,267   528,267 

Operating expenses

  758,724   834,513   565,211   2,158,448 
                 

NET OPERATING INCOME (LOSS)

 $827,670  $(837,353) $(565,211) $(574,894)

 

  

Scours

  

Mastitis

  

Other

  

Total

 

Total Assets as of September 30, 2025

 $26,039,474  $15,610,993  $4,079,656  $45,730,123 

Total Assets as of September 30, 2024

 $23,672,583  $16,798,955  $3,977,335  $44,448,873 

Depreciation and amortization expense during the three-month period ended September 30, 2025

 $377,484  $313,719  $17,464  $708,667 

Depreciation and amortization expense during the three-month period ended September 30, 2024

 $346,430  $319,815  $19,682  $685,927 

Capital Expenditures during the three-month period ended September 30, 2025

 $582,304  $11,020  $600  $593,924 

Capital Expenditures during the three-month period ended September 30, 2024

 $87,286  $1,126  $—  $88,412 

 

  

During the Nine-Month

 
  

Period Ended September 30, 2025

 
  

Scours

  

Mastitis

  

Other

  

Total

 

Product sales

 $19,871,621  $146,554  $—  $20,018,175 

Costs of goods sold

  11,365,307   117,874   —   11,483,181 

Gross margin

  8,506,314   28,680   —   8,534,994 
                 

Sales and marketing expenses

  2,259,124   212,911   —   2,472,035 

Product development expenses

  275,390   1,915,299   92,327   2,283,016 

Administrative expenses

  —   —   2,072,682   2,072,682 

Operating expenses

  2,534,514   2,128,210   2,165,009   6,827,733 
                 

NET OPERATING INCOME (LOSS)

 $5,971,800  $(2,099,530) $(2,165,009) $1,707,261 

 

  

During the Nine-Month

 
  

Period Ended September 30, 2024

 
  

Scours

  

Mastitis

  

Other

  

Total

 

Product sales

 $18,602,054  $139,986  $—  $18,742,040 

Costs of goods sold

  13,487,348   145,294   —   13,632,642 

Gross margin

  5,114,706   (5,308)  —   5,109,398 
                 

Sales and marketing expenses

  2,224,836   405,089   —   2,629,925 

Product development expenses

  154,233   2,821,525   103,431   3,079,189 

Administrative expenses

  —   —   1,661,838   1,661,838 

Operating expenses

  2,379,069   3,226,614   1,765,269   7,370,952 
                 

NET OPERATING INCOME (LOSS)

 $2,735,637  $(3,231,922) $(1,765,269) $(2,261,554)

 

  

Scours

  

Mastitis

  

Other

  

Total

 

Total Assets as of September 30, 2025

 $26,039,474  $15,610,993  $4,079,656  $45,730,123 

Total Assets as of September 30, 2024

 $23,672,583  $16,798,955  $3,977,335  $44,448,873 

Depreciation and amortization expense during the nine-month period ended September 30, 2025

 $1,075,518  $942,553  $56,406  $2,074,477 

Depreciation and amortization expense during the nine-month period ended September 30, 2024

 $1,027,711  $958,260  $59,221  $2,045,192 

Capital Expenditures during the nine-month period ended September 30, 2025

 $1,056,490  $18,772  $2,871  $1,078,133 

Capital Expenditures during the nine-month period ended September 30, 2024

 $220,098  $49,411  $—  $269,509 
 
  

During the Year Ended

 
  

December 31, 2024

 
  

Scours

  

Mastitis

  

Other

  

Total

 

Product sales

 $26,314,251  $178,918  $—  $26,493,169 

Costs of goods sold

  18,382,949   169,176   —   18,552,125 

Gross margin

  7,931,302   9,742   —   7,941,044 
                 

Product development expenses

  243,578   3,493,298   161,706   3,898,582 

Sales and marketing expenses

  2,909,799   556,273   —   3,466,072 

Administrative expenses

  —   —   2,216,549   2,216,549 

Operating expenses

  3,153,377   4,049,571   2,378,255   9,581,203 
                 

NET OPERATING INCOME (LOSS)

 $4,777,925  $(4,039,829) $(2,378,255) $(1,640,159)

 

  

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 expenses

  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)

 

  

Scours

  

Mastitis

  

Other

  

Total

 

Total Assets as of December 31, 2024

 $24,644,294  $16,523,048  $3,933,135  $45,100,477 

Total Assets as of December 31, 2023

 $24,735,413  $17,827,839  $1,244,850  $43,808,102 

Depreciation and amortization expense during the year ended December 31, 2024

 $1,373,815  $1,277,218  $78,814  $2,729,847 

Depreciation and amortization expense during the year ended December 31, 2023

 $1,365,988  $1,287,600  $86,032  $2,739,620 

Capital Expenditures during the year ended December 31, 2024

 $409,696  $53,721  $2,308  $465,725 

Capital Expenditures during the year ended December 31, 2023

 $1,096,819  $795,694  $—  $1,892,513