Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.8.0.1
Segment Reporting
12 Months Ended
Nov. 30, 2017
Segment Reporting [Abstract]  
Segment Reporting

Note 6 – 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 (expense) benefit, other comprehensive loss, and assets for the years ended November 30, 2017 and 2016:

 

     For the years ended November 30,  
     2017      2016  

Net revenue:

     

Umbilical cord blood and cord tissue stem cell service

   $ 24,942,089      $ 22,777,919  

PrepaCyte CB

     442,190        350,128  
  

 

 

    

 

 

 

Total net revenue

   $ 25,384,279      $ 23,128,047  
  

 

 

    

 

 

 

Cost of sales:

     

Umbilical cord blood and cord tissue stem cell service

   $ 6,257,628      $ 5,446,126  

PrepaCyte CB

     466,763        328,674  
  

 

 

    

 

 

 

Total cost of sales

   $ 6,724,391      $ 5,774,800  
  

 

 

    

 

 

 

Operating profit:

     

Umbilical cord blood and cord tissue stem cell service

   $ 5,067,228      $ 2,447,160  

PrepaCyte CB

     (61,002      (2,013,566
  

 

 

    

 

 

 

Total operating profit

   $ 5,006,226      $ 433,594  
  

 

 

    

 

 

 

Depreciation and amortization:

     

Umbilical cord blood and cord tissue stem cell service

   $ 193,741      $ 240,916  

PrepaCyte CB

     36,254        45,734  
  

 

 

    

 

 

 

Total depreciation and amortization

   $ 229,995      $ 286,650  
  

 

 

    

 

 

 

Interest expense:

     

Umbilical cord blood and cord tissue stem cell service

   $ 1,302,650      $ 925,075  

PrepaCyte CB

     —          22,265  
  

 

 

    

 

 

 

Total interest expense

   $ 1,302,650      $ 947,340  
  

 

 

    

 

 

 

Income tax (expense) benefit:

     

Umbilical cord blood and cord tissue stem cell service

   $ (1,308,603    $ 1,141,823  

PrepaCyte CB

     —          17,589  
  

 

 

    

 

 

 

Total income tax (expense) benefit

   $ (1,308,603    $ 1,159,412  
  

 

 

    

 

 

 

Other comprehensive income (loss):

     

Umbilical cord blood and cord tissue stem cell service

   $ 6,457      $ (135,524

PrepaCyte CB

     —          —    
  

 

 

    

 

 

 

Total other comprehensive income (loss)

   $ 6,457      $ (135,524
  

 

 

    

 

 

 

 

The following table shows the assets by segment as of November 30 2017 and November 30, 2016:

 

Assets:

     

Umbilical cord blood and cord tissue stem cell service

   $ 23,360,714      $ 18,960,261  

PrepaCyte CB

     549,283        578,207  
  

 

 

    

 

 

 

Total assets

   $ 23,909,997      $ 19,538,468