Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.26.1
Segment Reporting
 3 Months Ended
Feb. 28, 2026
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 Company’s chief operating decision makers (“CODM”) are its co-CEOs, who review financial information for the purposes of making operating decisions, assessing financial performance and allocating resources.

The CODM uses net income as reported on the consolidated statements of operations to assess segment performance and determine how to allocate resources. Total assets as presented on the consolidated balance sheets are used to measure segment assets. The CODM reviews significant expense categories that materially align with those presented in the consolidated statements of operations.

 

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, 2026 and February 28, 2025:

 

 

 

For the three months ended February 28,

 

 

 

2026

 

 

2025

 

Net revenue:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

7,643,113

 

 

$

7,865,888

 

PrepaCyte CB

 

 

38,594

 

 

 

20,913

 

Public cord blood banking

 

 

1,410

 

 

 

82,079

 

Total net revenue

 

$

7,683,117

 

 

$

7,968,880

 

Cost of sales:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,544,001

 

 

$

1,701,635

 

PrepaCyte CB

 

 

12,187

 

 

 

6,959

 

Public cord blood banking

 

 

100,300

 

 

 

275,994

 

Total cost of sales

 

$

1,656,488

 

 

$

1,984,588

 

Operating profit:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

837,865

 

 

$

1,242,917

 

PrepaCyte CB

 

 

26,159

 

 

 

7,009

 

Public cord blood banking

 

 

(98,890

)

 

 

(193,915

)

Total operating profit

 

$

765,134

 

 

$

1,056,011

 

Depreciation and amortization:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

183,639

 

 

$

184,908

 

PrepaCyte CB

 

 

248

 

 

 

6,945

 

Public cord blood banking

 

 

—

 

 

 

—

 

Total depreciation and amortization

 

$

183,887

 

 

$

191,853

 

Interest expense:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

462,709

 

 

$

494,962

 

PrepaCyte CB

 

 

—

 

 

 

—

 

Public cord blood banking

 

 

—

 

 

 

—

 

Total interest expense

 

$

462,709

 

 

$

494,962

 

 

The following table shows the assets by segment as of February 28, 2026 and November 30, 2025:

 

 

As of

 

 

As of

 

 

 

February 28, 2026

 

 

November 30, 2025

 

Assets:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell
   service

 

$

59,940,047

 

 

$

60,788,322

 

PrepaCyte CB

 

 

140,900

 

 

 

135,379

 

Public cord blood banking

 

 

804,039

 

 

 

804,813

 

Total assets

 

$

60,884,986

 

 

$

61,728,514