Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.6.0.2
Segment Reporting
12 Months Ended
Nov. 30, 2016
Segment Reporting [Abstract]  
Segment Reporting

Note 7Segment 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