Annual report pursuant to Section 13 and 15(d)

Segment Information

v2.4.1.9
Segment Information
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Segment Information
 
The accounting policies followed by the segments are described in Note 1, Nature of Business and Significant Accounting Policies.  Corporate charges are allocated to each of the reporting segments on the basis of total salary expense. Corporate charges include corporate headquarter costs and certain depreciation expenses. Certain corporate capital expenditures have not been allocated from Commercial Services to the other reporting segments since it is impracticable to do so. Assets and capital expenditures pertaining to discontinued operations have been included under Commercial Services.

Effective December 31, 2014, the Company has two reporting segments: Commercial Services and Interpace Diagnostics. The Company realigned its reporting segments, and the operating segments and service offerings within its reporting segments, due to the acquisition of RedPath and acquiring certain assets from Asuragen, Inc. (Asuragen) to reflect the Company's current and going forward business strategy. As part of this strategy, the decision has been made to discontinue the Group DCA business and classify this business as discontinued operations and held for sale, and no longer be presenting a Marketing Services segment. Our current reporting segments are reflective of the way the Company's management organizes for making operating decisions and assessing performance. These reporting segments allow investors to: better understand Company performance; better assess prospects for future cash flows; and make more informed decisions about the Company.
 
Commercial Services segment – includes personal promotion (the Company’s dedicated and established relationship sales teams), the Company’s medical and clinical educator services and full product commercialization service offerings.  Our Commercial Services segment is focused on providing outsourced pharmaceutical, biotechnology, medical device and diagnostic sales teams to our customers through a range of complementary support services designed to achieve their strategic and financial objectives. Our customers in this segment include pharmaceutical, biotechnology, diagnostics and healthcare companies. These service offerings have similar long-term average gross margins, contract terms, types of customers and regulatory environments.
 
Interpace Diagnostics segment – focuses on developing and commercializing molecular diagnostic tests, leveraging the latest technology and personalized medicine for better patient diagnosis and management. Through our Interpace Diagnostics segment, we aim to provide physicians and patients with diagnostic options for detecting genetic and other molecular alterations that are associated with gastrointestinal and endocrine cancers. Customers in our Interpace Diagnostics segment consist primarily of physicians, hospitals and clinics. The service offerings throughout the gastrointestinal operating segment and endocrine operating segment have similar long-term average gross margins, contract terms, types of customers and regulatory environments.
 
Commercial
Services
 
Interpace Diagnostics
 
Consolidated
For the year ended December 31, 2014:
 
 
 
 
 
Revenue
$
118,461

 
$
1,474

 
$
119,935

Operating loss
$
(3,168
)
 
$
(10,302
)
 
$
(13,470
)
Capital expenditures
$
1,580

 
$
1,271

 
$
2,851

Depreciation and amortization expense (1)
$
1,001

 
$
841

 
$
1,842

Total assets
$
34,807

 
$
81,099

 
$
115,906

For the year ended December 31, 2013:
 

 
 

 
 

Revenue
$
146,534

 
$
—

 
$
146,534

Operating loss
$
(980
)
 
$
(457
)
 
$
(1,437
)
Capital expenditures
$
1,818

 
$
—

 
$
1,818

Depreciation and amortization expense (1)
$
1,190

 
$
—

 
$
1,190

Total assets
$
67,562

 
$
1,502

 
$
69,064

 

(1) Excludes amounts included within discontinued operations.