v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Information [Abstract]  
SEGMENT INFORMATION

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 if approved 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 June 30, 2025		 
   Scours   Mastitis   Other   Total 
Product sales  $6,398,517   $46,363   $
—
   $6,444,880 
Costs of goods sold   3,589,893    37,063    
—
    3,626,956 
Gross margin   2,808,624    9,300    
—
    2,817,924 
                     
Product development expenses   93,011    710,745    28,102    831,858 
Sales and marketing expenses   634,846    61,240    
—
    696,086 
Administrative expenses   
—
    
—
    720,418    720,418 
Operating expenses   727,857    771,985    748,520    2,248,362 
                     
NET OPERATING INCOME (LOSS)  $2,080,767   $(762,685)  $(748,520)  $569,562 

 

  

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 expenses   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)

 

   Scours   Mastitis   Other   Total 
Total Assets as of June 30, 2025  $24,612,357   $15,924,755   $6,183,786   $46,720,898 
Total Assets as of June 30, 2024  $23,240,545   $17,107,377   $1,507,536   $41,855,458 
Depreciation and amortization expense during the three-month period ended June 30, 2025  $345,512   $314,175   $19,350   $679,037 
Depreciation and amortization expense during the three-month period ended June 30, 2024  $342,362   $319,727   $19,676   $681,765 
Capital Expenditures during the three-month period ended June 30, 2025  $151,808   $1,079   $2,271   $155,158 
Capital Expenditures during the three month period ended June 30, 2024  $93,338   $17,403   $
—
   $110,741 
  

During the Six-Month

Period Ended June 30, 2025

 
   Scours   Mastitis   Other   Total 
Product sales  $14,427,003   $85,051   $
—
   $14,512,054 
Costs of goods sold   8,264,436    75,722    
—
    8,340,158 
Gross margin   6,162,567    9,329    
—
    6,171,896 
                     
Product development expenses   186,496    1,339,657    62,552    1,588,705 
Sales and marketing expenses   1,421,983    130,761    
—
    1,552,744 
Administrative expenses   
—
    
—
    1,343,260    1,343,260 
Operating expenses   1,608,479    1,470,418    1,405,812    4,484,709 
                     
NET OPERATING INCOME (LOSS)  $4,554,088   $(1,461,089)  $(1,405,812)  $1,687,187 

 

  

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 expenses   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)

 

   Scours   Mastitis   Other   Total 
Total Assets as of June 30, 2025  $24,612,357   $15,924,755   $6,183,786   $46,720,898 
Total Assets as of June 30, 2024  $23,240,545   $17,107,377   $1,507,536   $41,855,458 
Depreciation and amortization expense during the six-month period ended June 30, 2025  $698,034   $628,834   $38,942   $1,365,810 
Depreciation and amortization expense during the six-month period ended June 30, 2024  $681,281   $638,445   $39,539   $1,359,265 
Capital Expenditures during the six-month period ended June 30, 2025  $474,185   $7,752   $2,271   $484,208 
Capital Expenditures during the six-month period ended June 30, 2024  $132,812   $48,285   $
—
   $181,097