Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.22.1
Segment Reporting
 3 Months Ended
Feb. 28, 2022
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 ended February 28, 2022 and 2021:

 

 

 

For the three months ended February 28,

 

 

 

2022

 

 

2021

 

Net revenue:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

7,157,486

 

 

$

6,738,631

 

PrepaCyte CB

 

 

18,200

 

 

 

38,000

 

Public cord blood banking

 

 

82,845

 

 

 

83,986

 

Total net revenue

 

$

7,258,531

 

 

$

6,860,617

 

Cost of sales:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,714,672

 

 

$

1,640,015

 

PrepaCyte CB

 

 

30,658

 

 

 

34,880

 

Public cord blood banking

 

 

357,872

 

 

 

337,302

 

Total cost of sales

 

$

2,103,202

 

 

$

2,012,197

 

Operating profit:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,765,213

 

 

$

1,492,353

 

PrepaCyte CB

 

 

(19,403

)

 

 

(3,777

)

Public cord blood banking

 

 

(275,388

)

 

 

(253,315

)

Total operating profit

 

$

1,470,422

 

 

$

1,235,261

 

Depreciation and amortization:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

270,862

 

 

$

14,368

 

PrepaCyte CB

 

 

6,944

 

 

 

6,895

 

Public cord blood banking

 

 

360

 

 

 

—

 

Total depreciation and amortization

 

$

278,166

 

 

$

21,263

 

Interest expense:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

306,095

 

 

$

280,219

 

PrepaCyte CB

 

 

—

 

 

 

—

 

Public cord blood banking

 

 

—

 

 

 

—

 

Total interest expense

 

$

306,095

 

 

$

280,219

 

 

The following table shows the assets by segment as of February 28, 2022 and November 30, 2021:

 

 

 

As of

 

 

As of

 

 

 

February 28, 2022

 

 

November 30, 2021

 

Assets:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell
   service

 

$

44,302,449

 

 

$

50,170,887

 

PrepaCyte CB

 

 

272,372

 

 

 

250,591

 

Public cord blood banking

 

 

10,233,477

 

 

 

10,240,598

 

Total assets

 

$

54,808,298

 

 

$

60,662,076