| Segment Reporting |
Note 7– Segment Reporting
During the third quarter of fiscal 2015, the Company purchased
certain assets and assumed certain liabilities and contracts that
CMDG used in the operation of its cord blood business (See Note 2).
The Company evaluated and determined that this acquisition
qualifies as a separate segment.
The Company is organized in two 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”). |
The following table shows, by segment: net revenue, cost of sales,
operating profit, depreciation and amortization, interest expense,
income tax benefit (expense) and other comprehensive income for the
three months and nine months ended August 31, 2016:
|
|
|
|
|
|
|
|
|
| |
|
For the three months
ended August 31,
2016 |
|
|
For the nine months
ended August 31,
2016 |
|
|
Net revenue
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
6,243,803 |
|
|
$ |
16,970,939 |
|
|
Prepacyte®-CB
|
|
|
88,135 |
|
|
|
286,253 |
|
|
|
|
|
|
|
|
|
|
|
Total net revenue
|
|
$ |
6,331,938 |
|
|
$ |
17,257,192 |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
1,482,900 |
|
|
$ |
4,073,293 |
|
|
Prepacyte®-CB
|
|
|
68,331 |
|
|
|
257,329 |
|
|
|
|
|
|
|
|
|
|
|
Total cost of sales
|
|
$ |
1,551,231 |
|
|
$ |
4,330,622 |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
27,310 |
|
|
$ |
84,542 |
|
|
Prepacyte®-CB
|
|
|
12,436 |
|
|
|
38,624 |
|
|
|
|
|
|
|
|
|
|
|
Total depreciation and amortization
|
|
$ |
39,746 |
|
|
$ |
123,166 |
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
808,254 |
|
|
$ |
1,864,325 |
|
|
Prepacyte®-CB
|
|
|
(1,870,329 |
) |
|
|
(1,887,594 |
) |
|
|
|
|
|
|
|
|
|
|
Total operating loss
|
|
$ |
(1,062,075 |
) |
|
$ |
(23,269 |
) |
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
199,439 |
|
|
$ |
781,971 |
|
|
Prepacyte®-CB
|
|
|
— |
|
|
|
22,265 |
|
|
|
|
|
|
|
|
|
|
|
Total interest expense
|
|
$ |
199,439 |
|
|
$ |
804,236 |
|
|
|
|
|
|
|
|
|
|
The following table shows the assets by segment as of
August 31, 2016 and November 30, 2015:
|
|
|
|
|
|
|
|
|
| |
|
As of August 31,
2016 |
|
|
As of November 30,
2015 |
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
16,755,419 |
|
|
$ |
16,697,621 |
|
|
Prepacyte®-CB
|
|
|
786,866 |
|
|
|
2,800,325 |
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
17,542,285 |
|
|
$ |
19,497,946 |
|
|