Quarterly report pursuant to Section 13 or 15(d)

Note 16 - Segments

v3.7.0.1
Note 16 - Segments
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
1
6
.
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. We 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.
 
T
hree Months Ended June 30, 2017
 
Diagnostics
 
 
Therapeutics
 
 
Corporate
 
 
Total
 
Tc 99m tilmanocept sales revenue:
                               
United States
  $
    $
    $
    $
 
International
   
     
     
     
 
Tc 99m tilmanocept license revenue
   
100,000
     
     
     
100,000
 
Grant and other revenue
   
418,375
     
93,224
     
     
511,599
 
Total revenue
   
518,375
     
93,224
     
     
611,599
 
Cost of goods sold, excluding depreciation and amortization
   
     
     
     
 
Research and development expenses,
excluding depreciation and amortization
   
1,108,101
     
77,773
     
     
1,185,874
 
Selling, general and administrative expenses,
excluding depreciation and amortization
(1)
   
     
3,462
     
4,175,583
     
4,179,045
 
Depreciation and amortization
(2)
   
     
     
70,539
     
70,539
 
Income (loss) from operations
(3)
   
(589,726
)
   
11,989
     
(4,246,122
)
   
(4,823,859
)
Other income
   
     
     
40,848
     
40,848
 
Income tax benefit (expense)
   
201,125
     
(4,089
)
   
1,434,198
     
1,631,234
 
Net income (loss) from continuing operations
   
(388,601
)
   
7,900
     
(2,771,076
)
   
(3,151,777
)
Loss from discontinued operations, net of tax
   
(82,376
)
   
     
     
(82,376
)
Loss on sale of discontinued operations, net of tax
   
(1,953,378
)
   
     
     
(1,953,378
)
Net income (loss)
   
(2,424,355
)
   
7,900
     
(2,771,076
)
   
(5,187,531
)
Total assets, net of depreciation and amortization:
                               
United States
   
16,373,919
     
16,002
     
9,411,189
     
25,801,110
 
International
   
98,806
     
     
2,299
     
101,105
 
Capital expenditures
   
     
     
8,170
     
8,170
 
 
Three Months Ended
June 30
, 2016
 
Diagnostics
 
 
Therapeutics
 
 
Corporate
 
 
Total
 
Tc 99m tilmanocept sales revenue:
                               
United States
  $
    $
    $
    $
 
International
   
4,399
     
     
     
4,399
 
Tc 99m tilmanocept license revenue
   
245,950
     
     
     
245,950
 
Grant and other revenue
   
865,359
     
51,452
     
     
916,811
 
Total revenue
   
1,115,708
     
51,452
     
     
1,167,160
 
Cost of goods sold, excluding depreciation and amortization
   
807
     
     
     
807
 
Research and development expenses,
excluding depreciation and amortization
   
1,907,885
     
111,326
     
     
2,019,211
 
Selling, general and administrative expenses,
excluding depreciation and amortization
(1)
   
     
4,430
     
1,289,203
     
1,293,633
 
Depreciation and amortization
(2)
   
     
     
94,184
     
94,184
 
Loss from operations
(3)
   
(792,984
)
   
(64,304
)
   
(1,383,387
)
   
(2,240,675
)
Other income, excluding equity in loss of R-NAV, LLC
(4)
   
     
     
1,427,078
     
1,427,078
 
Equity in loss of R-NAV, LLC
   
     
     
(2,920
)
   
(2,920
)
Net income (loss) from continuing operations
   
(792,984
)
   
(64,304
)
   
40,771
     
(816,517
)
Loss from discontinued operations, net of tax
   
(5,864,790
)
   
     
     
(5,864,790
)
Net income (loss)
   
(6,657,774
)
   
(64,304
)
   
40,771
     
(6,681,307
)
Total assets, net of depreciation and amortization:
                               
United States
   
4,774,933
     
36,841
     
3,548,425
     
8,360,199
 
International
   
321,359
     
     
591
     
321,950
 
Capital expenditures
   
     
     
1,847
     
1,847
 
 
 
Six Months Ended June 30, 2017
 
Diagnostics
 
 
Therapeutics
 
 
Corporate
 
 
Total
 
Tc 99m tilmanocept sales revenue:
                               
United States
  $
    $
    $
    $
 
International
   
     
     
     
 
Tc 99m tilmanocept license revenue
   
100,000
     
     
     
100,000
 
Grant and other revenue
   
989,737
     
101,892
     
     
1,091,629
 
Total revenue
   
1,089,737
     
101,892
     
     
1,191,629
 
Cost of goods sold, excluding depreciation and amortization
   
     
     
     
 
Research and development expenses,
excluding depreciation and amortization
   
1,521,303
     
369,845
     
     
1,891,148
 
Selling, general and administrative expenses,
excluding depreciation and amortization
(1)
   
     
5,983
     
7,118,706
     
7,124,689
 
Depreciation and amortization
(2)
   
     
     
147,329
     
147,329
 
Loss from operations
(3)
   
(431,566
)
   
(273,936
)
   
(7,266,035
)
   
(7,971,537
)
Other expense
   
     
     
(1,130,261
)
   
(1,130,261
)
Income tax benefit
   
146,296
     
92,861
     
2,846,249
     
3,085,406
 
Net loss from continuing operations
   
(285,270
)
   
(181,075
)
   
(5,550,047
)
   
(6,016,392
)
Loss from discontinued operations, net of tax
   
(338,237
)
   
     
     
(338,237
)
Gain on sale of discontinued operations, net of tax
   
86,748,123
     
     
     
86,748,123
 
Net income (loss)
   
86,124,616
     
(181,075
)
   
(5,550,047
)
   
80,393,494
 
Total assets, net of depreciation and amortization:
                               
United States
   
16,373,919
     
16,002
     
9,411,189
     
25,801,110
 
International
   
98,806
     
     
2,299
     
101,105
 
Capital expenditures
   
     
     
8,170
     
8,170
 
 
Six
Months Ended
June 30
, 2016
 
Diagnostics
 
 
Therapeutics
 
 
Corporate
 
 
Total
 
Tc 99m tilmanocept sales revenue:
                               
United States
  $
    $
    $
    $
 
International
   
13,199
     
     
     
13,199
 
Tc 99m tilmanocept license revenue
   
500,000
     
     
     
500,000
 
Grant and other revenue
   
1,550,994
     
51,452
     
     
1,602,446
 
Total revenue
   
2,064,193
     
51,452
     
     
2,115,645
 
Cost of goods sold, excluding depreciation and amortization
   
2,296
     
     
     
2,296
 
Research and development expenses,
excluding depreciation and amortization
   
3,738,356
     
353,126
     
     
4,091,482
 
Selling, general and administrative expenses,
excluding depreciation and amortization
(1)
   
     
3,832
     
3,847,961
     
3,851,793
 
Depreciation and amortization
(2)
   
     
     
169,150
     
169,150
 
Loss from operations
(3)
   
(1,676,459
)
   
(305,506
)
   
(4,017,111
)
   
(5,999,076
)
Other income, excluding equity in loss of R-NAV, LLC
(4)
   
     
     
2,515,902
     
2,515,902
 
Equity in loss of R-NAV, LLC
   
     
     
(15,159
)
   
(15,159
)
Net loss from continuing operations
   
(1,676,459
)
   
(305,506
)
   
(1,516,368
)
   
(3,498,333
)
Loss from discontinued operations, net of tax
   
(6,869,223
)
   
     
     
(6,869,223
)
Net loss
   
(8,545,682
)
   
(305,506
)
   
(1,516,368
)
   
(10,367,556
)
Total assets, net of depreciation and amortization:
                               
United States
   
4,774,933
     
36,841
     
3,548,425
     
8,360,199
 
International
   
321,359
     
     
591
     
321,950
 
Capital expenditures
   
     
     
1,847
     
1,847
 
 
 
(
1
)
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.
 
(
2
)
Depreciation and amortization is reflected in selling, general and administrative expenses (
$70,539
and
$94,184
for the
three
-month periods ended
June 30, 2017
and
2016
and
$147,329
and
$169,150
for the
six
-month periods ended
June 30, 2017
and
2016,
respectively).
 
(
3
)
Income (loss) from operations does
not
reflect the allocation of certain selling, general and administrative expenses, excluding depreciation and amortization, to our individual reportable segments.
 
(
4
)
Amounts consist primarily of changes in fair value of financial instruments and losses on debt extinguishment, which are
not
currently allocated to our individual reportable segments.