Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.21.2
Segment Reporting
6 Months Ended
May 31, 2021
Segment Reporting [Abstract]  
Segment Reporting

Note 2 Segment Reporting

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, depreciation and amortization, operating profit, and interest expense for the three months and six months ended May 31, 2021 and May 31, 2020:

 

 

 

For the three

months ended

May 31,

2021

 

 

For the three

months ended

May 31,

2020

 

Net revenue

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

7,158,886

 

 

$

7,600,902

 

PrepaCyte®-CB

 

 

 

 

 

57,300

 

Public cord blood banking

 

 

46,309

 

 

 

213,642

 

Total net revenue

 

$

7,205,195

 

 

$

7,871,844

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,869,769

 

 

$

1,966,441

 

PrepaCyte®-CB

 

 

41,203

 

 

 

32,014

 

Public cord blood banking

 

 

311,699

 

 

 

482,088

 

Total cost of sales

 

$

2,222,671

 

 

$

2,480,543

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

260,226

 

 

$

36,408

 

PrepaCyte®-CB

 

 

6,894

 

 

 

6,895

 

Public cord blood banking

 

 

302

 

 

 

 

Total depreciation and amortization

 

$

267,422

 

 

$

43,303

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

2,308,856

 

 

$

2,002,877

 

PrepaCyte®-CB

 

 

(48,097

)

 

 

17,984

 

Public cord blood banking

 

 

(265,691

)

 

 

(268,675

)

Total operating income

 

$

1,995,068

 

 

$

1,752,186

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

341,390

 

 

$

365,371

 

PrepaCyte®-CB

 

 

 

 

 

 

Public cord blood banking

 

 

 

 

 

 

Total interest expense

 

$

341,390

 

 

$

365,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six

months ended

May 31,

2021

 

 

For the six

months ended

May 31,

2020

 

Net revenue

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

13,897,517

 

 

$

15,007,190

 

PrepaCyte®-CB

 

 

38,000

 

 

 

117,707

 

Public cord blood banking

 

 

130,295

 

 

 

367,721

 

Total net revenue

 

$

14,065,812

 

 

$

15,492,618

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

3,509,784

 

 

$

4,021,515

 

PrepaCyte®-CB

 

 

76,084

 

 

 

73,131

 

Public cord blood banking

 

 

649,000

 

 

 

889,041

 

Total cost of sales

 

$

4,234,868

 

 

$

4,983,687

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

274,594

 

 

$

73,735

 

PrepaCyte®-CB

 

 

13,789

 

 

 

13,789

 

Public cord blood banking

 

 

302

 

 

 

 

Total depreciation and amortization

 

$

288,685

 

 

$

87,524

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

3,801,209

 

 

$

3,492,424

 

PrepaCyte®-CB

 

 

(51,873

)

 

 

30,379

 

Public cord blood banking

 

 

(519,007

)

 

 

(521,547

)

Total operating income

 

$

3,230,329

 

 

$

3,001,256

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

621,609

 

 

$

730,670

 

PrepaCyte®-CB

 

 

 

 

 

 

Public cord blood banking

 

 

 

 

 

 

Total interest expense

 

$

621,609

 

 

$

730,670

 

 

 

 

 

 

 

 

 

 

 

The following table shows the assets by segment as of May 31, 2021 and November 30, 2020:

 

 

 

As of

May 31,

2021

 

 

As of

November 30,

2020

 

Assets

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

46,465,499

 

 

$

34,215,780

 

PrepaCyte®-CB

 

 

283,830

 

 

 

302,683

 

Public cord blood banking

 

 

11,569,083

 

 

 

11,681,631

 

Total assets

 

$

58,318,412

 

 

$

46,200,094