| 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
CytoMedical 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), other comprehensive income, and
assets for the years ended November 30, 2016 and 2015:
|
|
|
|
|
|
|
|
|
| |
|
For the years ended November 30, |
|
| |
|
2016 |
|
|
2015 |
|
|
Net revenue:
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
22,777,919 |
|
|
$ |
20,620,138 |
|
|
PrepaCyte CB
|
|
|
350,128 |
|
|
|
471,293 |
|
|
|
|
|
|
|
|
|
|
|
Total net revenue
|
|
$ |
23,128,047 |
|
|
$ |
21,091,431 |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales:
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
5,446,126 |
|
|
$ |
5,276,125 |
|
|
PrepaCyte CB
|
|
|
328,674 |
|
|
|
354,740 |
|
|
|
|
|
|
|
|
|
|
|
Total cost of sales
|
|
$ |
5,774,800 |
|
|
$ |
5,630,865 |
|
|
|
|
|
|
|
|
|
|
|
Operating profit:
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
2,447,160 |
|
|
$ |
2,842,957 |
|
|
PrepaCyte CB
|
|
|
(2,013,566 |
) |
|
|
90,267 |
|
|
|
|
|
|
|
|
|
|
|
Total operating profit
|
|
$ |
433,594 |
|
|
$ |
2,933,224 |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
240,916 |
|
|
$ |
218,568 |
|
|
PrepaCyte CB
|
|
|
45,735 |
|
|
|
22,640 |
|
|
|
|
|
|
|
|
|
|
|
Total depreciation and amortization
|
|
$ |
286,651 |
|
|
$ |
241,208 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
925,075 |
|
|
$ |
1,277,815 |
|
|
PrepaCyte CB
|
|
|
22,265 |
|
|
|
26,057 |
|
|
|
|
|
|
|
|
|
|
|
Total interest expense
|
|
$ |
947,340 |
|
|
$ |
1,303,872 |
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (expense):
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
1,141,823 |
|
|
$ |
7,166,789 |
|
|
PrepaCyte CB
|
|
|
17,589 |
|
|
|
(9,967 |
) |
|
|
|
|
|
|
|
|
|
|
Total income tax benefit (expense)
|
|
$ |
1,159,412 |
|
|
$ |
7,156,822 |
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
(135,524 |
) |
|
$ |
169,932 |
|
|
PrepaCyte CB
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive (loss) income
|
|
$ |
(135,524 |
) |
|
$ |
169,932 |
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service
|
|
$ |
18,960,261 |
|
|
$ |
16,697,621 |
|
|
PrepaCyte CB
|
|
|
578,207 |
|
|
|
2,800,325 |
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
19,538,468 |
|
|
$ |
19,497,946 |
|
|
|
|
|
|
|
|
|
|
|