Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.21.2
Segment Reporting
9 Months Ended
Aug. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting

Note 2 Segment Reporting

The Company is organized in three reportable segments:

 

1.

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”).

 

3.

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.

The following table shows, by segment: net revenue, cost of sales, depreciation and amortization, operating profit, and interest expense for the three months and nine months ended August 31, 2021 and August 31, 2020:

 

 

 

For the three

months ended

August 31,

2021

 

 

For the three

months ended

August 31,

2020

 

Net revenue

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

7,326,516

 

 

$

7,914,732

 

PrepaCyte®-CB

 

 

18,200

 

 

 

82,800

 

Public cord blood banking

 

 

158,936

 

 

 

116,826

 

Total net revenue

 

$

7,503,652

 

 

$

8,114,358

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,943,419

 

 

$

1,911,141

 

PrepaCyte®-CB

 

 

53,498

 

 

 

55,021

 

Public cord blood banking

 

 

462,021

 

 

 

394,162

 

Total cost of sales

 

$

2,458,938

 

 

$

2,360,324

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

262,229

 

 

$

35,616

 

PrepaCyte®-CB

 

 

6,894

 

 

 

6,894

 

Public cord blood banking

 

 

359

 

 

 

 

Total depreciation and amortization

 

$

269,482

 

 

$

42,510

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,941,976

 

 

$

2,736,798

 

PrepaCyte®-CB

 

 

(42,193

)

 

 

21,291

 

Public cord blood banking

 

 

(303,445

)

 

 

(277,868

)

Total operating income

 

$

1,596,338

 

 

$

2,480,221

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

335,870

 

 

$

338,675

 

PrepaCyte®-CB

 

 

 

 

 

 

Public cord blood banking

 

 

 

 

 

 

Total interest expense

 

$

335,870

 

 

$

338,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine

months ended

August 31,

2021

 

 

For the nine

months ended

August 31,

2020

 

Net revenue

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

21,224,033

 

 

$

22,921,922

 

PrepaCyte®-CB

 

 

56,200

 

 

 

200,507

 

Public cord blood banking

 

 

289,231

 

 

 

484,547

 

Total net revenue

 

$

21,569,464

 

 

$

23,606,976

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

5,453,203

 

 

$

5,932,655

 

PrepaCyte®-CB

 

 

129,581

 

 

 

128,154

 

Public cord blood banking

 

 

1,111,022

 

 

 

1,283,202

 

Total cost of sales

 

$

6,693,806

 

 

$

7,344,011

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

536,823

 

 

$

109,351

 

PrepaCyte®-CB

 

 

20,683

 

 

 

20,683

 

Public cord blood banking

 

 

661

 

 

 

 

Total depreciation and amortization

 

$

558,167

 

 

$

130,034

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

5,743,184

 

 

$

6,229,222

 

PrepaCyte®-CB

 

 

(94,065

)

 

 

51,671

 

Public cord blood banking

 

 

(822,452

)

 

 

(799,416

)

Total operating income

 

$

4,826,667

 

 

$

5,481,477

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

957,479

 

 

$

1,069,345

 

PrepaCyte®-CB

 

 

 

 

 

 

Public cord blood banking

 

 

 

 

 

 

Total interest expense

 

$

957,479

 

 

$

1,069,345

 

 

 

 

 

 

 

 

 

 

 

The following table shows the assets by segment as of August 31, 2021 and November 30, 2020:

 

 

 

As of

August 31,

2021

 

 

As of

November 30,

2020

 

Assets

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

47,637,754

 

 

$

34,215,780

 

PrepaCyte®-CB

 

 

243,312

 

 

 

302,683

 

Public cord blood banking

 

 

11,542,964

 

 

 

11,681,631

 

Total assets

 

$

59,424,030

 

 

$

46,200,094