v3.26.1
SEGMENT DISCLOSURES
 6 Months Ended
Apr. 30, 2026
SEGMENT DISCLOSURES  
SEGMENT DISCLOSURES

NOTE F - SEGMENT DISCLOSURES

 

The Company’s segments are based on the organizational structure for which financial results are regularly evaluated by the Company’s Chief Executive Officer, which is our chief operating decision maker (the “CODM”) to determine resource allocation and assess performance. Each reportable segment is managed by its own management team and reports to executive management. The Company has three reportable segments: (i) Puerto Rico consulting, (ii) United States consulting, and (iii) Europe consulting. The reportable segments provide services primarily to the pharmaceutical, chemical, medical device and biotechnology industries in their respective markets. The services vary between customers and projects based on the nature of the project and the technical skills necessary to accomplish the project tasks. Therefore, the allocation of consultancy resources is mostly based on the segment’s ability to provide the best consultant in the most profitable and cost-effective manner. Accordingly, the CODM evaluates segment performance based on the segment’s (i) revenue volume, (ii) gross profit ratio to revenue, and (iii) income (loss) from operations.

 

The following table presents information about the reported segments revenue from services, gross profit ratio to revenue and income (loss) from operations of the Company for the three-month and six-month periods ended April 30, 2026 and 2025. There is no intersegment revenue for the mentioned periods. Corporate expenses that support the operating units have been allocated to the segments. Asset information by reportable segment is not presented, since the Company does not produce such information internally, nor does it use such data to manage its business.

 

 

 

Three months ended April 30,

 

 

Six months ended April 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Puerto Rico consulting

 

$1,450,970

 

 

 

 

 

$1,170,245

 

 

 

 

 

$2,615,153

 

 

 

 

 

$2,273,514

 

 

 

 

United States consulting

 

 

619,780

 

 

 

 

 

 

714,104

 

 

 

 

 

 

1,166,668

 

 

 

 

 

 

1,360,237

 

 

 

 

Europe consulting

 

 

625,633

 

 

 

 

 

 

532,695

 

 

 

 

 

 

1,209,528

 

 

 

 

 

 

1,253,953

 

 

 

 

Other

 

 

6,560

 

 

 

 

 

 

-

 

 

 

 

 

 

6,560

 

 

 

 

 

 

673

 

 

 

 

Total consolidated revenue

 

$2,702,943

 

 

 

 

 

$2,417,044

 

 

 

 

 

$4,997,909

 

 

 

 

 

$4,888,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT¹:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Puerto Rico consulting

 

$439,604

 

 

 

30.3%

 

$347,521

 

 

 

29.7%

 

$690,475

 

 

 

26.4%

 

$545,075

 

 

 

24.0%

United States consulting

 

 

153,801

 

 

 

24.8%

 

 

216,375

 

 

 

30.3%

 

 

359,464

 

 

 

30.8%

 

 

438,700

 

 

 

32.3%

Europe consulting

 

 

308,555

 

 

 

49.3%

 

 

254,830

 

 

 

47.8%

 

 

574,395

 

 

 

47.5%

 

 

602,387

 

 

 

48.0%

Other

 

 

81

 

 

 

1.2%

 

 

-

 

 

-

%

 

 

81

 

 

 

1.2%

 

 

673

 

 

 

100.0%

Total consolidated gross profit

 

$902,041

 

 

 

33.4%

 

$818,726

 

 

 

33.9%

 

$1,624,415

 

 

 

32.5%

 

$1,586,835

 

 

 

32.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS²:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Puerto Rico consulting

 

$160,524

 

 

 

 

 

 

$43,937

 

 

 

 

 

 

$137,395

 

 

 

 

 

 

$(832 )

 

 

 

 

United States consulting

 

 

(51,840 )

 

 

 

 

 

 

(128,028 )

 

 

 

 

 

 

(111,708 )

 

 

 

 

 

 

(228,090 )

 

 

 

 

Europe consulting

 

 

69,752

 

 

 

 

 

 

 

10,837

 

 

 

 

 

 

 

80,633

 

 

 

 

 

 

 

77,218

 

 

 

 

 

Other

 

 

(33,760 )

 

 

 

 

 

 

(25,068 )

 

 

 

 

 

 

(56,179 )

 

 

 

 

 

 

(38,809 )

 

 

 

 

Total consolidated income (loss) from operations

 

 

144,676

 

 

 

 

 

 

 

(98,322 )

 

 

 

 

 

 

50,141

 

 

 

 

 

 

 

(190,513 )

 

 

 

 

OTHER INCOME, NET

 

 

94,677

 

 

 

 

 

 

 

199,186

 

 

 

 

 

 

 

225,702

 

 

 

 

 

 

 

301,028

 

 

 

 

 

Total consolidated income before income tax

 

$239,353

 

 

 

 

 

 

$100,864

 

 

 

 

 

 

$275,843

 

 

 

 

 

 

$110,515

 

 

 

 

 

 

1 Gross profit represents revenues less cost of service, which the latter is mostly composed of personnel cost. Percentages represent the segment(s) gross profit to its related revenue segment(s).

2 Income (loss) from operations represents gross profit reduced by selling, general and administrative expenses.

 

Long lived assets (property and equipment) as of April 30, 2026 and October 31, 2025, and related depreciation and amortization expense for the three and six months ended April 30, 2026 and 2025, were concentrated in corporate expenses in Puerto Rico. Accordingly, depreciation expense and acquisition of property and equipment, as presented in the condensed consolidated statements of cash flows, are mainly related to corporate expenses.