Annual report pursuant to Section 13 and 15(d)

Segments

v3.7.0.1
Segments
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segments

We report information about our operating segments using the “management approach” in accordance with current accounting standards. This information is based on the way management organizes and reports the segments within the enterprise for making operating decisions and assessing performance. Our reportable segments are identified based on differences in products, services and markets served. There were no inter-segment sales. Prior to 2015, our products and development programs were all related to diagnostic substances. Our majority-owned subsidiary, Macrophage Therapeutics, Inc., was formed and received initial funding during the first quarter of 2015, which resulted in a re-evaluation of the Company's segment determination. We now manage our business based on two primary types of drug products: (i) diagnostic substances, including Tc 99m tilmanocept and other diagnostic applications of our Manocept platform, our R-NAV joint venture (terminated on May 31, 2016), NAV4694 and NAV5001 (license terminated in April 2015), and (ii) therapeutic development programs, including therapeutic applications of our Manocept platform and all development programs undertaken by Macrophage Therapeutics, Inc.

 

The information in the following tables is derived directly from each reportable segment’s financial reporting.

 

Year Ended December 31, 2016   Diagnostics   Therapeutics   Corporate   Total
Lymphoseek sales revenue:                                
United States (a)   $ 16,982,234     $ —       $ —       $ 16,982,234  
International     54,864       —         —         54,864  
Lymphoseek license revenue     1,795,625       —         —         1,795,625  
Grant and other revenue     3,012,217       124,766       —         3,136,983  
Total revenue     21,844,940       124,766       —         21,969,706  
Cost of goods sold, excluding depreciation and amortization     2,192,902       —         —         2,192,902  
Research and development expenses,
   excluding depreciation and amortization		     8,120,425       762,151       —         8,882,576  
Selling, general and administrative expenses,
   excluding depreciation and amortization (b)		     3,652,154       63,158       8,901,022       12,616,334  
Depreciation and amortization (c)     104,138       —         397,231       501,369  
Income (loss) from operations (d)     7,775,321       (700,543 )     (9,298,253 )     (2,223,475 )
Other income (expense), excluding
   equity in the loss of R-NAV, LLC (e)		     —         —         (12,070,397 )     (12,070,397 )
Equity in the loss of R-NAV, LLC     —         —         (15,159 )     (15,159 )
Net income (loss)     7,775,321       (700,543 )     (21,383,809 )     (14,309,031 )
Total assets, net of depreciation and amortization:                                
United States   $ 3,610,354     $ 15,075     $ 8,703,714     $ 12,329,143  
International     131,752       —         781       132,533  
Capital expenditures     —         —         1,847       1,847  

 

Year Ended December 31, 2015   Diagnostics   Therapeutics   Corporate   Total
Lymphoseek sales revenue:                                
United States (a)   $ 10,229,659     $ —       $ —       $ 10,229,659  
International     24,693       —         —         24,693  
Lymphoseek license revenue     1,133,333       —         —         1,133,333  
Grant and other revenue     1,861,622       —         —         1,861,622  
Total revenue     13,249,307       —         —         13,249,307  
Cost of goods sold, excluding depreciation and amortization     1,654,800       —         —         1,654,800  
Research and development expenses,
   excluding depreciation and amortization		     12,046,221       730,895       —         12,777,116  
Selling, general and administrative expenses,
   excluding depreciation and amortization (b)		     5,852,214       123,884       10,820,392       16,796,490  
Depreciation and amortization (c)     281,314       —         290,105       571,419  
Loss from operations (d)     (6,585,242 )     (854,779 )     (11,110,497 )     (18,550,518 )
Other income (expense), excluding
   equity in the loss of R-NAV, LLC (e)		     —         —         (9,902,424 )     (9,902,424 )
Equity in the loss of R-NAV, LLC     —         —         (305,253 )     (305,253 )
Benefit from income taxes     —         —         436,051       436,051  
Net loss from continuing operations     (6,585,242 )     (854,779 )     (20,882,123 )     (28,322,144 )
Income from discontinued operations, net of tax effect (f)     —         —         758,609       758,609  
Net loss     (6,585,242 )     (854,779 )     (20,123,514 )     (27,563,535 )
Total assets, net of depreciation and amortization:                                
United States   $ 3,948,971     $ —       $ 10,603,863     $ 14,552,834  
International     410,666       —         1,013       411,679  
Capital expenditures     26,589       —         12,412       39,001  

 

(a) All sales to Cardinal Health 414 are made in the United States; Cardinal Health 414 distributes the product throughout the U.S. through its network of nuclear pharmacies.
(b) General and administrative expenses, excluding depreciation and amortization, represent costs that relate to the general administration of the Company and as such are not currently allocated to our individual reportable segments. Marketing and selling expenses are allocated to our individual reportable segments.

(c) Depreciation and amortization is reflected in cost of goods sold ($104,138 and $99,963 for the years ended December 31, 2016 and 2015, respectively), research and development ($0 and $10,617 for the years ended December 31, 2016 and 2015, respectively), and selling, general and administrative expenses ($397,231 and $460,839 for the years ended December 31, 2016 and 2015, respectively).
(d) Loss from operations does not reflect the allocation of certain selling, general and administrative expenses, excluding depreciation and amortization, to our individual reportable segments.
(e) Amounts consist primarily of interest income, interest expense, changes in fair value of financial instruments, and losses on debt extinguishment, which are not currently allocated to our individual reportable segments.
(f) Amount of contingent consideration recognized related to 2015 GDS Business revenue royalties pursuant to the 2011 sale of the GDS Business to Devicor, net of tax effect. See Note 1(a).