NOTE 5 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 Company’s chief operating decision maker (“CODM”) is its co-CEOs, who review financial information for the purposes of making operating decisions, assessing financial performance and allocating resources.

The CODM uses net income as reported on the consolidated statements of operations to assess segment performance and determine how to allocate resources. Total assets as presented on the consolidated balance sheets is used to

measure segment assets. The CODM reviews significant expense categories that materially align with those presented in the consolidated statements of operations.

The following table shows, by segment: net revenue, cost of sales, operating profit, depreciation and amortization, interest expense, and assets for the years ended November 30, 2025 and November 30, 2024:

 

 

 

For the years ended November 30,

 

 

 

2025

 

 

2024

 

Net revenue:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

31,382,704

 

 

$

31,551,550

 

PrepaCyte CB

 

 

54,104

 

 

 

67,884

 

Public cord blood banking

 

 

129,513

 

 

 

366,672

 

Total net revenue

 

$

31,566,321

 

 

$

31,986,106

 

Cost of sales:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

6,639,186

 

 

$

6,889,882

 

PrepaCyte CB

 

 

23,280

 

 

 

45,082

 

Public cord blood banking

 

 

714,182

 

 

 

1,012,788

 

Total cost of sales

 

$

7,376,648

 

 

$

7,947,752

 

Operating profit:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

5,411,691

 

 

$

4,131,796

 

PrepaCyte CB

 

 

14,206

 

 

 

(4,976

)

Public cord blood banking

 

 

(4,943,503

)

 

 

(646,536

)

Total operating profit

 

$

482,394

 

 

$

3,480,284

 

Depreciation and amortization:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

734,856

 

 

$

455,324

 

PrepaCyte CB

 

 

16,618

 

 

 

27,778

 

Public cord blood banking

 

 

 

 

 

420

 

Total depreciation and amortization

 

$

751,474

 

 

$

483,522

 

Interest expense:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell service

 

$

2,066,256

 

 

$

1,864,684

 

PrepaCyte CB

 

 

 

 

 

 

Public cord blood banking

 

 

 

 

 

 

Total interest expense

 

$

2,066,256

 

 

$

1,864,684

 

 

The following table shows the assets by segment as of November 30, 2025 and November 30, 2024:

 

 

As of

 

 

As of

 

 

 

November 30, 2025

 

 

November 30, 2024

 

Assets:

 

 

 

 

 

 

Umbilical cord blood and cord tissue stem cell
   service

 

$

60,788,322

 

 

$

59,259,451

 

PrepaCyte CB

 

 

135,379

 

 

 

138,169

 

Public cord blood banking

 

 

804,813

 

 

 

5,280,013

 

Total assets

 

$

61,728,514

 

 

$

64,677,633

 

 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 28, 2024
2022Feb 28, 2023
2021Feb 22, 2022
2020Mar 1, 2021
2019Feb 28, 2020
2018Feb 28, 2019
2017Feb 28, 2018
2016Feb 28, 2017
2015Feb 29, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.