| 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, 2023 and 2022:
|
|
|
|
|
|
|
|
|
|
|
For the three months ended August 31, |
|
|
|
2023 |
|
|
2022 |
|
Net revenue: |
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service |
|
$ |
7,862,949 |
|
|
$ |
7,522,134 |
|
PrepaCyte CB |
|
|
2,543 |
|
|
|
21,000 |
|
Public cord blood banking |
|
|
4,383 |
|
|
|
137,825 |
|
Total net revenue |
|
$ |
7,869,875 |
|
|
$ |
7,680,959 |
|
Cost of sales: |
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service |
|
$ |
1,976,278 |
|
|
$ |
1,883,400 |
|
PrepaCyte CB |
|
|
982 |
|
|
|
10,622 |
|
Public cord blood banking |
|
|
178,927 |
|
|
|
454,733 |
|
Total cost of sales |
|
$ |
2,156,187 |
|
|
$ |
2,348,755 |
|
Operating profit: |
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service |
|
$ |
1,341,332 |
|
|
$ |
1,268,146 |
|
PrepaCyte CB |
|
|
(5,384 |
) |
|
|
3,433 |
|
Public cord blood banking |
|
|
(174,904 |
) |
|
|
(317,268 |
) |
Total operating profit |
|
$ |
1,161,044 |
|
|
$ |
954,311 |
|
Depreciation and amortization: |
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service |
|
$ |
273,972 |
|
|
$ |
274,598 |
|
PrepaCyte CB |
|
|
6,945 |
|
|
|
6,945 |
|
Public cord blood banking |
|
|
360 |
|
|
|
360 |
|
Total depreciation and amortization |
|
$ |
281,277 |
|
|
$ |
281,903 |
|
Interest expense: |
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service |
|
$ |
469,642 |
|
|
$ |
365,349 |
|
PrepaCyte CB |
|
|
— |
|
|
|
— |
|
Public cord blood banking |
|
|
— |
|
|
|
— |
|
Total interest expense |
|
$ |
469,642 |
|
|
$ |
365,349 |
|
|
|
|
|
|
|
|
|
|
For the nine months ended August 31, |
|
|
|
2023 |
|
|
2022 |
|
Net revenue: |
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service |
|
$ |
23,006,164 |
|
|
$ |
22,159,702 |
|
PrepaCyte CB |
|
|
61,920 |
|
|
|
75,600 |
|
Public cord blood banking |
|
|
398,896 |
|
|
|
337,405 |
|
Total net revenue |
|
$ |
23,466,980 |
|
|
$ |
22,572,707 |
|
Cost of sales: |
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service |
|
$ |
5,466,410 |
|
|
$ |
5,343,455 |
|
PrepaCyte CB |
|
|
27,432 |
|
|
|
63,934 |
|
Public cord blood banking |
|
|
872,895 |
|
|
|
1,246,108 |
|
Total cost of sales |
|
$ |
6,366,737 |
|
|
$ |
6,653,497 |
|
Operating profit: |
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service |
|
$ |
4,333,538 |
|
|
$ |
4,538,058 |
|
PrepaCyte CB |
|
|
13,654 |
|
|
|
(9,168 |
) |
Public cord blood banking |
|
|
(475,079 |
) |
|
|
(909,783 |
) |
Total operating profit |
|
$ |
3,872,113 |
|
|
$ |
3,619,107 |
|
Depreciation and amortization: |
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service |
|
$ |
821,287 |
|
|
$ |
818,081 |
|
PrepaCyte CB |
|
|
20,834 |
|
|
|
20,834 |
|
Public cord blood banking |
|
|
1,080 |
|
|
|
1,080 |
|
Total depreciation and amortization |
|
$ |
843,201 |
|
|
$ |
839,995 |
|
Interest expense: |
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell service |
|
$ |
1,405,825 |
|
|
$ |
947,968 |
|
PrepaCyte CB |
|
|
— |
|
|
|
— |
|
Public cord blood banking |
|
|
— |
|
|
|
— |
|
Total interest expense |
|
$ |
1,405,825 |
|
|
$ |
947,968 |
|
The following table shows the assets by segment as of August 31, 2023 and November 30, 2022:
|
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|
|
|
|
|
|
|
|
|
As of |
|
|
As of |
|
|
|
August 31, 2023 |
|
|
November 30, 2022 |
|
Assets: |
|
|
|
|
|
|
Umbilical cord blood and cord tissue stem cell
service |
|
$ |
60,226,085 |
|
|
$ |
54,849,697 |
|
PrepaCyte CB |
|
|
150,869 |
|
|
|
176,546 |
|
Public cord blood banking |
|
|
9,419,412 |
|
|
|
9,861,811 |
|
Total assets |
|
$ |
69,796,366 |
|
|
$ |
64,888,054 |
|
|