Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.1
Segment Reporting
 3 Months Ended
Feb. 28, 2023
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 ended February 28, 2023 and 2022:

 

 

 

For the three months ended February 28,

 

 

 

2023

 

 

2022

 

Net revenue:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

7,561,518

 

 

$

7,157,486

 

PrepaCyte CB

 

 

32,200

 

 

 

18,200

 

Public cord blood banking

 

 

230,697

 

 

 

82,845

 

Total net revenue

 

$

7,824,415

 

 

$

7,258,531

 

Cost of sales:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,687,250

 

 

$

1,714,672

 

PrepaCyte CB

 

 

17,122

 

 

 

30,658

 

Public cord blood banking

 

 

362,992

 

 

 

357,872

 

Total cost of sales

 

$

2,067,364

 

 

$

2,103,202

 

Operating profit:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,807,693

 

 

$

1,765,213

 

PrepaCyte CB

 

 

8,133

 

 

 

(19,403

)

Public cord blood banking

 

 

(132,655

)

 

 

(275,388

)

Total operating profit

 

$

1,683,171

 

 

$

1,470,422

 

Depreciation and amortization:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

273,539

 

 

$

270,862

 

PrepaCyte CB

 

 

6,945

 

 

 

6,944

 

Public cord blood banking

 

 

360

 

 

 

360

 

Total depreciation and amortization

 

$

280,844

 

 

$

278,166

 

Interest expense:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

466,231

 

 

$

306,095

 

PrepaCyte CB

 

 

—

 

 

 

—

 

Public cord blood banking

 

 

—

 

 

 

—

 

Total interest expense

 

$

466,231

 

 

$

306,095

 

 

 

 

 

 

 

 

 

The following table shows the assets by segment as of February 28, 2023 and November 30, 2022:

 

 

As of

 

 

As of

 

 

 

February 28, 2023

 

 

November 30, 2022

 

Assets:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell
   service

 

$

56,298,385

 

 

$

54,849,697

 

PrepaCyte CB

 

 

140,439

 

 

 

176,546

 

Public cord blood banking

 

 

9,695,211

 

 

 

9,861,811

 

Total assets

 

$

66,134,035

 

 

$

64,888,054