Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.20.2
Segment Reporting
9 Months Ended
Aug. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting

Note 3Segment 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, depreciation and amortization, operating profit, interest expense, and income tax (expense) benefit for the three months and nine months ended August 31, 2020 and August 31, 2019:

 

 

 

For the three

months ended

August 31,

2020

 

 

For the three

months ended

August 31,

2019

 

Net revenue

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

7,914,732

 

 

$

8,029,797

 

PrepaCyte®-CB

 

 

82,800

 

 

 

33,035

 

Public cord blood banking

 

 

116,826

 

 

 

160,561

 

Total net revenue

 

$

8,114,358

 

 

$

8,223,393

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,911,141

 

 

$

2,240,257

 

PrepaCyte®-CB

 

 

55,021

 

 

 

25,180

 

Public cord blood banking

 

 

394,162

 

 

 

323,898

 

Total cost of sales

 

$

2,360,324

 

 

$

2,589,335

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

35,616

 

 

$

38,223

 

PrepaCyte®-CB

 

 

6,894

 

 

 

9,063

 

Public cord blood banking

 

 

 

 

 

 

Total depreciation and amortization

 

$

42,510

 

 

$

47,286

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

2,736,798

 

 

$

2,175,563

 

PrepaCyte®-CB

 

 

21,291

 

 

 

(19,146

)

Public cord blood banking

 

 

(277,868

)

 

 

(163,336

)

Total operating income

 

$

2,480,221

 

 

$

1,993,081

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

338,675

 

 

$

413,942

 

PrepaCyte®-CB

 

 

 

 

 

 

Public cord blood banking

 

 

 

 

 

 

Total interest expense

 

$

338,675

 

 

$

413,942

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

151,570

 

 

$

498,748

 

PrepaCyte®-CB

 

 

 

 

 

 

Public cord blood banking

 

 

 

 

 

 

Total income tax expense

 

$

151,570

 

 

$

498,748

 

 

 

 

For the nine

months ended

August 31,

2020

 

 

For the nine

months ended

August 31,

2019

 

Net revenue

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

22,921,922

 

 

$

23,246,521

 

PrepaCyte®-CB

 

 

200,507

 

 

 

70,795

 

Public cord blood banking

 

 

484,547

 

 

 

529,041

 

Total net revenue

 

$

23,606,976

 

 

$

23,846,357

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

5,932,655

 

 

$

6,497,788

 

PrepaCyte®-CB

 

 

128,154

 

 

 

189,806

 

Public cord blood banking

 

 

1,283,202

 

 

 

996,259

 

Total cost of sales

 

$

7,344,011

 

 

$

7,683,853

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

109,351

 

 

$

132,409

 

PrepaCyte®-CB

 

 

20,683

 

 

 

27,191

 

Public cord blood banking

 

 

 

 

 

 

Total depreciation and amortization

 

$

130,034

 

 

$

159,600

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

6,229,222

 

 

$

6,307,426

 

PrepaCyte®-CB

 

 

51,671

 

 

 

(164,141

)

Public cord blood banking

 

 

(799,416

)

 

 

(2,799,978

)

Total operating income

 

$

5,481,477

 

 

$

3,343,307

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

1,069,345

 

 

$

1,245,154

 

PrepaCyte®-CB

 

 

 

 

 

 

Public cord blood banking

 

 

 

 

 

 

Total interest expense

 

$

1,069,345

 

 

$

1,245,154

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

783,960

 

 

$

654,358

 

PrepaCyte®-CB

 

 

 

 

 

 

Public cord blood banking

 

 

 

 

 

 

Total income tax expense

 

$

783,960

 

 

$

654,358

 

 

The following table shows the assets by segment as of August 31, 2020 and November 30, 2019:

 

 

 

As of

August 31,

2020

 

 

As of

November 30,

2019

 

Assets

 

 

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

30,896,188

 

 

$

28,975,002

 

PrepaCyte®-CB

 

 

291,117

 

 

 

289,804

 

Public cord blood banking

 

 

13,252,858

 

 

 

13,621,354

 

Total assets

 

$

44,440,163

 

 

$

42,886,160