Quarterly report pursuant to Section 13 or 15(d)

Note 16 - Segments

Note 16 - Segments

6 Months Ended

Jun. 30, 2017

Segment Reporting Disclosure [Text Block]

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

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

(

)

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.

(

)

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).

(

)

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.

(

)

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.