Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.10.0.1
Segment Reporting
12 Months Ended
Nov. 30, 2018
Segment Reporting [Abstract]  
Segment Reporting

Note 6– Segment Reporting

During the third quarter of fiscal 2018, the Company purchased the assets and assumed contracts that Cord:Use 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 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 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, 2018 and 2017:

 

     For the years ended November 30,  
     2018      2017  

Net revenue:

     

Umbilical cord blood and cord tissue stem cell service

   $ 28,817,872      $ 24,942,089  

PrepaCyte CB

     104,323        442,190  

Public cord blood banking

     296,295        —    
  

 

 

    

 

 

 

Total net revenue

   $ 29,218,490      $ 25,384,279  
  

 

 

    

 

 

 

Cost of sales:

     

Umbilical cord blood and cord tissue stem cell service

   $ 7,744,208      $ 6,257,628  

PrepaCyte CB

     169,397        466,763  

Public cord blood banking

     626,057        —    
  

 

 

    

 

 

 

Total cost of sales

   $ 8,539,662      $ 6,724,391  
  

 

 

    

 

 

 

 

Operating profit:

     

Umbilical cord blood and cord tissue stem cell service

   $ 5,620,394      $ 5,067,228  

PrepaCyte CB

     (101,329      (61,002

Public cord blood banking

     (329,762      —    
  

 

 

    

 

 

 

Total operating profit

   $ 5,189,303      $ 5,006,226  
  

 

 

    

 

 

 

Depreciation and amortization:

     

Umbilical cord blood and cord tissue stem cell service

   $ 281,072      $ 193,741  

PrepaCyte CB

     36,254        36,254  

Public cord blood banking

     —          —    
  

 

 

    

 

 

 

Total depreciation and amortization

   $ 317,326      $ 229,995  
  

 

 

    

 

 

 

Interest expense:

     

Umbilical cord blood and cord tissue stem cell service

   $ 1,546,900      $ 1,302,650  

PrepaCyte CB

     —          —    

Public cord blood banking

     —          —    
  

 

 

    

 

 

 

Total interest expense

   $ 1,546,900      $ 1,302,650  
  

 

 

    

 

 

 

Income tax (expense) benefit:

     

Umbilical cord blood and cord tissue stem cell service

   $ (4,472,504    $ (1,308,603

PrepaCyte CB

     —          —    

Public cord blood banking

     —          —    
  

 

 

    

 

 

 

Total income tax (expense) benefit

   $ (4,472,504    $ (1,308,603
  

 

 

    

 

 

 

Other comprehensive (loss) income:

     

Umbilical cord blood and cord tissue stem cell service

   $ 300,119      $ 6,457  

PrepaCyte CB

     —          —    

Public cord blood banking

     —          —    
  

 

 

    

 

 

 

Total other comprehensive income (loss)

   $ 300,119      $ 6,457  
  

 

 

    

 

 

 

The following table shows the assets by segment as of November 30 2018 and November 30, 2017:

 

Assets:

     

Umbilical cord blood and cord tissue stem cell service

   $ 26,239,260      $ 23,360,714  

PrepaCyte CB

     319,802        549,283  

Public cord blood banking

     15,831,081        —    
  

 

 

    

 

 

 

Total assets

   $ 42,390,143      $ 23,909,997