v3.26.3
SEGMENT DISCLOSURES
 9 Months Ended
Jul. 31, 2026
SEGMENT DISCLOSURES  
SEGMENT DISCLOSURES

NOTE G - 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 nine-month periods ended July 31, 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 July 31,

 

 

Nine months ended July 31,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Puerto Rico consulting

 

$1,367,830

 

 

 

 

 

$1,203,651

 

 

 

 

 

$3,982,983

 

 

 

 

 

$3,477,165

 

 

 

 

United States consulting

 

 

739,996

 

 

 

 

 

 

642,863

 

 

 

 

 

 

1,906,664

 

 

 

 

 

 

2,003,100

 

 

 

 

Europe consulting

 

 

228,229

 

 

 

 

 

 

98,984

 

 

 

 

 

 

1,437,757

 

 

 

 

 

 

1,352,937

 

 

 

 

Other

 

 

-

 

 

 

 

 

 

17,585

 

 

 

 

 

 

6,560

 

 

 

 

 

 

18,258

 

 

 

 

Total consolidated revenue

 

$2,336,055

 

 

 

 

 

$1,963,083

 

 

 

 

 

$7,333,964

 

 

 

 

 

$6,851,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT¹:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Puerto Rico consulting

 

$331,568

 

 

 

24.2%

 

$293,134

 

 

 

24.4%

 

$1,022,043

 

 

 

25.7%

 

$838,209

 

 

 

24.1%

United States consulting

 

 

285,705

 

 

 

38.6%

 

 

232,703

 

 

 

36.2%

 

 

645,169

 

 

 

33.8%

 

 

671,403

 

 

 

33.5%

Europe consulting

 

 

74,461

 

 

 

32.6%

 

 

31,452

 

 

 

31.8%

 

 

648,856

 

 

 

45.1%

 

 

633,839

 

 

 

46.8%

Other

 

 

-

 

 

 

0.0%

 

 

16,973

 

 

 

96.5%

 

 

81

 

 

 

1.2%

 

 

17,646

 

 

 

96.6%

Total consolidated gross profit

 

$691,734

 

 

 

29.6%

 

$574,262

 

 

 

29.2%

 

$2,316,149

 

 

 

31.6%

 

$2,161,097

 

 

 

31.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS²:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Puerto Rico consulting

 

$23,251

 

 

 

 

 

 

$(61,228 )

 

 

 

 

 

$160,646

 

 

 

 

 

 

$(62,060 )

 

 

 

 

United States consulting

 

 

24,093

 

 

 

 

 

 

 

(123,888 )

 

 

 

 

 

 

(87,615 )

 

 

 

 

 

 

(351,978 )

 

 

 

 

Europe consulting

 

 

(78,571 )

 

 

 

 

 

 

(117,469 )

 

 

 

 

 

 

2,062

 

 

 

 

 

 

 

(40,251 )

 

 

 

 

Other

 

 

(40,585 )

 

 

 

 

 

 

(11,292 )

 

 

 

 

 

 

(96,764 )

 

 

 

 

 

 

(50,101 )

 

 

 

 

Total consolidated loss from operations

 

 

(71,812 )

 

 

 

 

 

 

(313,877 )

 

 

 

 

 

 

(21,671 )

 

 

 

 

 

 

(504,390 )

 

 

 

 

OTHER INCOME, NET

 

 

60,714

 

 

 

 

 

 

 

104,848

 

 

 

 

 

 

 

286,416

 

 

 

 

 

 

 

405,876

 

 

 

 

 

Total consolidated income (loss) before income tax

 

$(11,098 )

 

 

 

 

 

$(209,029 )

 

 

 

 

 

$264,745

 

 

 

 

 

 

$(98,514 )

 

 

 

 

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 July 31, 2026 and October 31, 2025, and related depreciation and amortization expense for the three and nine months ended July 31, 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.