IMMUCELL CORP /DE/ Segments Disclosure

16. SEGMENT INFORMATION

 

Our business operations (being the development, manufacture and sale of products that improve the health and productivity of dairy and beef cattle) are described in Note 1, "The Company and Nature of Operations". Our chief operating decision-maker (CODM), our President and CEO, regularly evaluates two operating segments: i) Scours and ii) Mastitis for purposes of deciding how to allocate resources and assess performance. Our CODM primarily evaluates performance based on product sales as well as net operating income (loss). No operating segments have been aggregated; therefore, our two operating segments are the Company's two reportable segments. 

 

Scours segment - consists of the First Defense^® product line. The core technology underlying the Scours segment is focused on polyclonal antibodies.

 

Mastitis segment - includes our CMT product line, consisting of reagents and equipment used for rapid cow-side testing to identify mastitic quarters by detecting elevated somatic cell counts. This segment also includes our Re-Tain^® product in development for the treatment of subclinical mastitis based on the bacteriocin nisin. On December 23, 2025, we made the decision to cease our focus on obtaining FDA approval of Re-Tain^® and instead continue the stability and investigational testing related to Re-Tain^®. 

 

Other - includes unallocated administrative and overhead expenses and other products.

 

The revenues and expenses allocated to each segment are in some cases direct and in other cases involve reasonable and consistent estimations by management. The significant accounting policies of these segments are the same as those described in Note 2, "Basis of Presentation and Use of Estimates and Significant Accounting Policies".

 

		During the Year Ended December 31, 2025
		Scours				Mastitis				Other				Total
Product sales		$	27,447,786			$	196,388			$	—			$	27,644,174
Costs of goods sold			16,029,844				169,127				—				16,198,971
Gross profit			11,417,942				27,261				—				11,445,203
Product development expenses			362,548				2,559,849				119,483				3,041,880
Sales and marketing expenses			3,164,951				388,424				—				3,553,375
Administrative expenses			—				—				3,200,643				3,200,643
Operating expenses			3,527,499				2,948,273				3,320,126				9,795,898
NET OPERATING INCOME (LOSS)		$	7,890,443			$	(2,921,012	)		$	(3,320,126	)		$	1,649,305

 

		During the Year Ended December 31, 2024
		Scours				Mastitis				Other				Total
Product sales		$	26,314,251			$	178,918			$	—			$	26,493,169
Costs of goods sold			18,382,949				169,176				—				18,552,125
Gross profit			7,931,302				9,742				—				7,941,044
Product development expenses			243,578				3,493,298				161,706				3,898,582
Sales and marketing expenses			2,909,799				556,273				—				3,466,072
Administrative expenses			—				—				2,216,549				2,216,549
Operating expenses			3,153,377				4,049,571				2,378,255				9,581,203
NET OPERATING INCOME (LOSS)		$	4,777,925			$	(4,039,829	)		$	(2,378,255	)		$	(1,640,159	)

 

		Scours				Mastitis				Other				Total
Total Assets as of December 31, 2025(1)		$	38,245,418			$	134,138			$	4,152,891			$	42,532,447
Total Assets as of December 31, 2024		$	24,644,294			$	16,523,048			$	3,933,135			$	45,100,477
Depreciation and amortization expense during the year ended December 31, 2025		$	1,458,046			$	1,256,656			$	69,247			$	2,783,949
Depreciation and amortization expense during the year ended December 31, 2024		$	1,373,815			$	1,277,218			$	78,814			$	2,729,847
Capital Expenditures during the year ended December 31, 2025		$	1,168,428			$	74,883			$	7,128			$	1,250,439
Capital Expenditures during the year ended December 31, 2024		$	409,696			$	53,721			$	2,308			$	465,725

⁽¹⁾ As of December 31, 2025, property, plant and equipment, net includes approximately $12,300,000 of idle assets, which primarily related to one of our manufacturing facilities that was previously utilized for Re-Tain^® that we now plan to refit for use in producing First Defense^® products. 

 

We are not organized by geographic region.