Celularity Inc Segments Disclosure

19. Segment Information

 

The Company regularly reviews its segments and the approach used by management to evaluate performance and allocate resources. The Company manages its operations through an evaluation of three distinct operating segments: Cell Therapy, Degenerative Disease, and BioBanking. The chief operating decision maker, who is the Company’s chief executive officer, uses the actual segment contribution results compared to budgets, among other factors, for performance evaluation and resource allocation among these segments. The segment contribution is calculated as net revenues less the cost of revenues (excluding amortization of acquired intangible assets) and direct expenses. Direct expenses in the Cell Therapy operating segment consist of research and development costs, and direct expenses in the Degenerative Disease and Biobanking operating segments consist mainly of selling, general, and administrative costs. The CODM assesses actual results against budgets and forecasts, and uses this information to make decisions about strategic investment into the Company’s operations.

 

The reportable segments, which are the same as the operating segments, were determined based on the distinct nature of the activities performed by each segment. Cell Therapy broadly refers to therapies the Company is researching and developing. Therapies being researched are unproven and in various phases of development. Degenerative Disease produces, sells and licenses products used in surgical and wound care markets. BioBanking collects stem cells from umbilical cords and placentas and provides storage of such cells on behalf of individuals for future use.

 

The Company manages its assets on a total company basis, not by operating segment. Therefore, the chief operating decision maker does not regularly review any asset information or related income statement effects by operating segment and, accordingly, asset information is not reported by reportable segment. Refer to the Consolidated Balance Sheet for information about total assets.

 

 

Financial information by segment is as follows:

 

Schedule of Financial Information by Segment

		Cell Therapy				BioBanking				Degenerative Disease				Total
		Year Ended December 31, 2024
		Cell Therapy				BioBanking				Degenerative Disease				Total
Net revenues		$	688			$	5,140			$	48,392			$	54,220
Cost of revenues (excluding amortization of acquired intangible assets)			—				1,172				13,817				14,989
Direct expenses			15,807				1,673				20,846				38,326
Segment contribution			(15,119	)			2,295				13,729				905
Other general and administrative expenses															37,703
Indirect expenses															1,560	(a)
Loss from operations														$	(38,358	)
Other expenses															(19,534	)
Loss before income taxes														$	(57,892	)
(a) Components of indirect expenses
Change in fair value of contingent consideration liability														$	(193	)
Goodwill impairment
-
Amortization															1,753
Total other														$	1,560

 

		Cell Therapy				BioBanking				Degenerative Disease				Total
		Year Ended December 31, 2023
		Cell Therapy				BioBanking				Degenerative Disease				Total
Net revenues		$	—			$	5,441			$	17,330			$	22,771
Cost of revenues (excluding amortization of acquired intangible assets)			—				1,650				14,366				16,016
Direct expenses			28,694				1,752				9,720				40,166
Segment contribution			(28,694	)			2,039				(6,756	)			(33,411	)
Other general and administrative expenses															40,876
Indirect expenses															118,001	(a)
Loss from operations														$	(192,287	)
Other expenses															(3,998	)
Loss before income taxes														$	(196,285	)
(a) Components of indirect expenses
Change in fair value of contingent consideration liability														$	(104,339	)
Goodwill impairment															112,347
IPR&D impairment															107,800
Amortization															2,193
Total other														$	118,001