v3.25.0.1
Segment Information
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Segment Reporting [Abstract]    
Segment Information

14. 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 business segments: Cell Therapy, Degenerative Disease, and BioBanking. The chief operating decision maker uses the revenues and earnings (losses) of the operating segments, among other factors, for performance evaluation and resource allocation among these segments.

 

The reportable 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 operating segment. Total assets were $128,840 and $143,889 as of September 30, 2024 and December 31, 2023, respectively.

 

Financial information by segment for the three months ended September 30, 2024 and 2023 is as follows:

 

Schedule of Financial Information by Segment 

   Cell
Therapy		   BioBanking   Degenerative
Disease		   Other   Total 
   Three Months Ended September 30, 2024 
   Cell
Therapy		   BioBanking   Degenerative
Disease		   Other   Total 
Net revenues  $-   $1,292   $8,004   $-   $9,296 
Cost of revenues (excluding amortization of acquired intangible assets)   -    238    3,645    -    3,883 
Direct expenses   3,496    353    4,187    8,529    16,565 
Segment contribution  $(3,496)  $701   $172   $(8,529)  $(11,152)
Indirect expenses                  375 (a)  375 
Loss from operations                      $(11,527)
                          
(a) Components of other                         
Amortization                  375      
Total other                 $375      

 

 

   Cell
Therapy		   BioBanking   Degenerative
Disease		   Other   Total 
   Three Months Ended September 30, 2023 
   Cell
Therapy		   BioBanking   Degenerative
Disease		   Other   Total 
Net revenues  $-   $1,427   $2,359   $-   $3,786 
Cost of revenues (excluding amortization of acquired intangible assets)   -    398    3,204    -    3,602 
Direct expenses   4,887    350    1,901    9,074    16,212 
Segment contribution  $(4,887)  $679   $(2,746)  $(9,074)  $(16,028)
Indirect expenses                  83,228 (b)  83,228 
Loss from operations                      $(99,256)
                          
(b) Components of other                         
Change in fair value of contingent stock consideration                  (39)     
Goodwill impairment                  82,714      
Amortization                  553      
Total other                 $83,228      

 

Financial information by segment for the nine months ended September 30, 2024 and 2023 is as follows:

 

   Cell
Therapy		   BioBanking   Degenerative
Disease		   Other   Total 
   Nine Months Ended September 30, 2024 
   Cell
Therapy		   BioBanking   Degenerative
Disease		   Other   Total 
Net revenues  $-   $3,857   $32,231   $-   $36,088 
Cost of revenues (excluding amortization of acquired intangible assets)   -    952    6,694    -    7,646 
Direct expenses   12,383    1,216    14,385    28,159    56,143 
Segment contribution  $(12,383)  $1,689   $11,152   $(28,159)  $(27,701)
Indirect expenses                  1,377 (a)  1,377 
Loss from operations                      $(29,078)
                          
(a) Components of other                         
Amortization                  1,377      
Total other                 $1,377      

 

   Cell
Therapy		   BioBanking   Degenerative
Disease		   Other   ``Total 
   Nine Months Ended September 30, 2023 
   Cell
Therapy		   BioBanking   Degenerative
Disease		   Other   Total 
Net revenues  $-   $4,062   $6,597   $-   $10,659 
Cost of revenues (excluding amortization of acquired intangible assets)   -    1,355    5,052    -    6,407 
Direct expenses   53,505    780    6,799    31,481    92,565 
Segment contribution  $(53,505)  $1,927   $(5,254)  $(31,481)  $(88,313)
Indirect expenses                  117,289 (b)  117,289 
Loss from operations                      $(205,602)
                          
(b) Components of other                         
Change in fair value of contingent consideration liability                  (104,339)     
Change in fair value of contingent stock consideration                  (159)     
Goodwill impairment                  112,347      
IPR&D impairment                  107,800      
Amortization                  1,640      
Total other                 $117,289      

 

18. Segment Information

 

The Company regularly reviews its segments and the approach used by management to evaluate performance and allocate resources. Prior to the third quarter of 2020, Legacy Celularity managed operations as one segment. In the third quarter of 2020, the Company began to manage its operations through an evaluation of three distinct business segments: Cell Therapy, Degenerative Disease, and BioBanking. This change was prompted by certain organizational and personnel changes. The chief operating decision maker uses the revenues and earnings of the operating segments, among other factors, for performance evaluation and resource allocation among these segments.

 

The reportable 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 by operating segment and, accordingly, asset information is not reported by operating segment. Total assets were approximately $143,889 and $401,066 as of December 31, 2023 and 2022, respectively.

 

 

Financial information by segment is as follows:

 

Schedule of Financial Information by Segment 

   Cell
Therapy		   BioBanking   Degenerative Disease   Other   Total 
   Year Ended December 31, 2023 
   Cell
Therapy		   BioBanking   Degenerative Disease   Other   Total 
Net revenues  $—   $5,441   $17,330   $—   $22,771 
Gross profit   —    3,791    2,964    —    6,755 
Direct expenses   28,694    1,752    9,720    40,876    81,041 
Segment contribution   (28,694)   2,039    (6,756)   (40,876)   (74,286)
Indirect expenses                  118,001 (a)  118,001 
Loss from operations                      $(192,287)
(a) Components of other                         
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      

 

   Cell
Therapy		   BioBanking   Degenerative
Disease		   Other   Total 
   Year Ended December 31, 2022 
   Cell
Therapy		   BioBanking   Degenerative
Disease		   Other   Total 
Net revenues  $—   $5,512   $12,463   $—   $17,975 
Gross profit   —    1,976    (3,666)   —    (1,690)
Direct expenses   75,379    1,699    10,859    56,261    144,198 
Segment contribution   (75,379)   277    (14,525)   (56,261)   (145,888)
Indirect expenses                  (120,288)(b)  (120,288)
Loss from operations                      $(25,600)
(b) Components of other                         
Change in fair value of contingent consideration liability                  (126,277)     
Change in fair value of contingent stock consideration                  186      
Goodwill impairment                  3,610      
Amortization                  2,193      
Total other                 $(120,288)