| Segment Reporting |
Note 2 – Segment Reporting
The Company is organized in three reportable segments:
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|
1.
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The cellular processing and cryogenic storage of umbilical cord blood and cord tissue stem cells for family use. Revenue is generated from the initial processing and testing fees and the annual storage fees charged each year for storage (the “Umbilical cord blood and cord tissue stem cell service”).
|
|
|
2.
|
The manufacture of PrepaCyte® CB units, the processing technology used to process umbilical cord blood stem cells. Revenue is generated from the sales of the PrepaCyte® CB units (the “PrepaCyte®-CB”).
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|
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3.
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The cellular processing and cryogenic storage of umbilical cord blood stem cells for public use. Revenue is generated from the sale of the cord blood units to the National Marrow Donor Program (“NMDP”), which distributes the cord blood units to transplant centers located in the United States, and around the world.
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The following table shows, by segment: net revenue, cost of sales, depreciation and amortization, operating profit, and interest expense for the three months and six months ended May 31, 2021 and May 31, 2020:
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|
|
For the three
months ended
May 31,
2021
|
|
|
For the three
months ended
May 31,
2020
|
|
|
Net revenue
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$
|
7,158,886
|
|
|
$
|
7,600,902
|
|
|
PrepaCyte®-CB
|
|
|
—
|
|
|
|
57,300
|
|
|
Public cord blood banking
|
|
|
46,309
|
|
|
|
213,642
|
|
|
Total net revenue
|
|
$
|
7,205,195
|
|
|
$
|
7,871,844
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$
|
1,869,769
|
|
|
$
|
1,966,441
|
|
|
PrepaCyte®-CB
|
|
|
41,203
|
|
|
|
32,014
|
|
|
Public cord blood banking
|
|
|
311,699
|
|
|
|
482,088
|
|
|
Total cost of sales
|
|
$
|
2,222,671
|
|
|
$
|
2,480,543
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$
|
260,226
|
|
|
$
|
36,408
|
|
|
PrepaCyte®-CB
|
|
|
6,894
|
|
|
|
6,895
|
|
|
Public cord blood banking
|
|
|
302
|
|
|
|
—
|
|
|
Total depreciation and amortization
|
|
$
|
267,422
|
|
|
$
|
43,303
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$
|
2,308,856
|
|
|
$
|
2,002,877
|
|
|
PrepaCyte®-CB
|
|
|
(48,097
|
)
|
|
|
17,984
|
|
|
Public cord blood banking
|
|
|
(265,691
|
)
|
|
|
(268,675
|
)
|
|
Total operating income
|
|
$
|
1,995,068
|
|
|
$
|
1,752,186
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$
|
341,390
|
|
|
$
|
365,371
|
|
|
PrepaCyte®-CB
|
|
|
—
|
|
|
|
—
|
|
|
Public cord blood banking
|
|
|
—
|
|
|
|
—
|
|
|
Total interest expense
|
|
$
|
341,390
|
|
|
$
|
365,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six
months ended
May 31,
2021
|
|
|
For the six
months ended
May 31,
2020
|
|
|
Net revenue
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$
|
13,897,517
|
|
|
$
|
15,007,190
|
|
|
PrepaCyte®-CB
|
|
|
38,000
|
|
|
|
117,707
|
|
|
Public cord blood banking
|
|
|
130,295
|
|
|
|
367,721
|
|
|
Total net revenue
|
|
$
|
14,065,812
|
|
|
$
|
15,492,618
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$
|
3,509,784
|
|
|
$
|
4,021,515
|
|
|
PrepaCyte®-CB
|
|
|
76,084
|
|
|
|
73,131
|
|
|
Public cord blood banking
|
|
|
649,000
|
|
|
|
889,041
|
|
|
Total cost of sales
|
|
$
|
4,234,868
|
|
|
$
|
4,983,687
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$
|
274,594
|
|
|
$
|
73,735
|
|
|
PrepaCyte®-CB
|
|
|
13,789
|
|
|
|
13,789
|
|
|
Public cord blood banking
|
|
|
302
|
|
|
|
—
|
|
|
Total depreciation and amortization
|
|
$
|
288,685
|
|
|
$
|
87,524
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$
|
3,801,209
|
|
|
$
|
3,492,424
|
|
|
PrepaCyte®-CB
|
|
|
(51,873
|
)
|
|
|
30,379
|
|
|
Public cord blood banking
|
|
|
(519,007
|
)
|
|
|
(521,547
|
)
|
|
Total operating income
|
|
$
|
3,230,329
|
|
|
$
|
3,001,256
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$
|
621,609
|
|
|
$
|
730,670
|
|
|
PrepaCyte®-CB
|
|
|
—
|
|
|
|
—
|
|
|
Public cord blood banking
|
|
|
—
|
|
|
|
—
|
|
|
Total interest expense
|
|
$
|
621,609
|
|
|
$
|
730,670
|
|
|
|
|
|
|
|
|
|
|
|
The following table shows the assets by segment as of May 31, 2021 and November 30, 2020:
|
|
|
As of
May 31,
2021
|
|
|
As of
November 30,
2020
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$
|
46,465,499
|
|
|
$
|
34,215,780
|
|
|
PrepaCyte®-CB
|
|
|
283,830
|
|
|
|
302,683
|
|
|
Public cord blood banking
|
|
|
11,569,083
|
|
|
|
11,681,631
|
|
|
Total assets
|
|
$
|
58,318,412
|
|
|
$
|
46,200,094
|
|
|