CHAMPIONS ONCOLOGY, INC.CSBR

CHAMPIONS ONCOLOGY, INC. Segments Disclosure

10-KFiled Jul 28, 20172 min read
Business Segment Information
 
The Company operates in two segments, POS and TOS. The accounting policies of the Company’s segments are the same as those described in Note 2. The Company evaluates performance of its segments based on profit or loss from operations before stock compensation expense, depreciation and amortization, interest expense, interest income, gain on sale of assets, special charges or benefits, and income taxes (“segment profit”). Management uses segment profit information for internal reporting and control purposes and considers it important in making decisions regarding the allocation of capital and other resources, risk assessment, and employee compensation, among other matters. The following tables summarize, for the periods indicated, operating results by business segment (in thousands):
Year Ended April 30, 2017
Personalized
Oncology
Solutions
(POS)
 
Translational
Oncology
Solutions
(TOS)
 
Unallocated
Corporate
Overhead
 
Consolidated
Net revenue
$
1,720

 
$
13,691

 
$
—

 
$
15,411

Direct cost of services
(1,431
)
 
(8,218
)
 
—

 
(9,649
)
Sales and marketing costs
(540
)
 
(2,520
)
 
—

 
(3,060
)
Other operating expenses
—

 
(4,077
)
 
(2,772
)
 
(6,849
)
Stock compensation expense (1)
—

 
—

 
(2,662
)
 
(2,662
)
 
 
 
 
 
 
 
 
Segment loss
$
(251
)
 
$
(1,124
)
 
$
(5,434
)
 
$
(6,809
)
Year Ended April 30, 2016
Personalized
Oncology
Solutions
(POS)
 
Translational
Oncology
Solutions
(TOS)
 
Unallocated
Corporate
Overhead
 
Consolidated
Net revenue
$
1,972

 
$
9,210

 
$
—

 
$
11,182

Direct cost of services
(2,075
)
 
(6,553
)
 
—

 
(8,628
)
Sales and marketing costs
(833
)
 
(2,414
)
 
—

 
(3,247
)
Other operating expenses
—

 
(3,886
)
 
(3,138
)
 
(7,024
)
Stock compensation expense (1)
—

 
—

 
(2,599
)
 
(2,599
)
 
 
 
 
 
 
 
 
Segment loss
$
(936
)
 
$
(3,643
)
 
$
(5,737
)
 
$
(10,316
)
 
(1) Stock compensation expense is shown separately and is excluded from direct costs of services, sales and marketing costs, and other operating expenses in the table above, as it is managed on a consolidated basis and is not used by management to evaluate the performance of its segments. See Note 6 for the allocation of stock compensation expense relative to the individual line items as it is reported on the Company's Consolidated Statement of Operations.
 
All of the Company’s revenue is recorded in the United States and substantially all of its long-lived assets are in the United States.

Historical Timeline

Fiscal YearFiled
2017Jul 28, 2017Showing above
2016Jul 29, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&ELeasesCommitmentsStock CompensationNew StandardsPay vs Performance