Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.22.2.2
Segment Reporting
9 Months Ended
Aug. 31, 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 and nine months ended August 31, 2022 and 2021:

 

 

For the three months ended August 31,

 

 

 

2022

 

 

2021

 

Net revenue:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

7,522,134

 

 

$

7,326,516

 

PrepaCyte CB

 

 

21,000

 

 

 

18,200

 

Public cord blood banking

 

 

137,825

 

 

 

158,936

 

Total net revenue

 

$

7,680,959

 

 

$

7,503,652

 

Cost of sales:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,883,400

 

 

$

1,943,419

 

PrepaCyte CB

 

 

10,622

 

 

 

53,498

 

Public cord blood banking

 

 

454,733

 

 

 

462,021

 

Total cost of sales

 

$

2,348,755

 

 

$

2,458,938

 

Operating profit:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,268,146

 

 

$

1,941,976

 

PrepaCyte CB

 

 

3,433

 

 

 

(42,193

)

Public cord blood banking

 

 

(317,268

)

 

 

(303,445

)

Total operating profit

 

$

954,311

 

 

$

1,596,338

 

Depreciation and amortization:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

274,598

 

 

$

262,229

 

PrepaCyte CB

 

 

6,945

 

 

 

6,894

 

Public cord blood banking

 

 

360

 

 

 

359

 

Total depreciation and amortization

 

$

281,903

 

 

$

269,482

 

Interest expense:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

365,349

 

 

$

335,870

 

PrepaCyte CB

 

 

 

 

 

 

Public cord blood banking

 

 

 

 

 

 

Total interest expense

 

$

365,349

 

 

$

335,870

 

 

 

 

 

 

 

 

 

 

For the nine months ended August 31,

 

 

 

2022

 

 

2021

 

Net revenue:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

22,159,702

 

 

$

21,224,033

 

PrepaCyte CB

 

 

75,600

 

 

 

56,200

 

Public cord blood banking

 

 

337,405

 

 

 

289,231

 

Total net revenue

 

$

22,572,707

 

 

$

21,569,464

 

Cost of sales:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

5,343,455

 

 

$

5,453,203

 

PrepaCyte CB

 

 

63,934

 

 

 

129,581

 

Public cord blood banking

 

 

1,246,108

 

 

 

1,111,022

 

Total cost of sales

 

$

6,653,497

 

 

$

6,693,806

 

Operating profit:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

4,538,058

 

 

$

5,743,184

 

PrepaCyte CB

 

 

(9,168

)

 

 

(94,065

)

Public cord blood banking

 

 

(909,783

)

 

 

(822,452

)

Total operating profit

 

$

3,619,107

 

 

$

4,826,667

 

Depreciation and amortization:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

818,081

 

 

$

536,823

 

PrepaCyte CB

 

 

20,834

 

 

 

20,683

 

Public cord blood banking

 

 

1,080

 

 

 

661

 

Total depreciation and amortization

 

$

839,995

 

 

$

558,167

 

Interest expense:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

947,968

 

 

$

957,479

 

PrepaCyte CB

 

 

 

 

 

 

Public cord blood banking

 

 

 

 

 

 

Total interest expense

 

$

947,968

 

 

$

957,479

 

 

 

The following table shows the assets by segment as of August 31, 2022 and November 30, 2021:

 

 

 

As of

 

 

As of

 

 

 

August 31, 2022

 

 

November 30, 2021

 

Assets:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell
   service

 

$

56,548,260

 

 

$

50,170,887

 

PrepaCyte CB

 

 

238,636

 

 

 

250,591

 

Public cord blood banking

 

 

9,978,397

 

 

 

10,240,598

 

Total assets

 

$

66,765,293

 

 

$

60,662,076