Current report filing

Note 19 - Segments

Note 19 - Segments

12 Months Ended

Dec. 31, 2016

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. 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

Tc99m

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.

Certain revenue and expense amounts in the years ended

December 31, 2016

and

2015

have been reclassified to discontinued operations.

See Note

Year Ended December 31, 2016	Diagnostics			Therapeutics			Corporate			Total
Tc99m tilmanocept sales revenue:
United States	$	—		$	—		$	—		$	—
International		39,601			—			—			39,601
Tc99m tilmanocept license revenue		1,795,625			—			—			1,795,625
Grant and other revenue		3,011,642			124,766			—			3,136,408
Total revenue		4,846,868			124,766			—			4,971,634
Cost of goods sold, excluding depreciation and amortization		62,260			—			—			62,260
Research and development expenses, excluding depreciation and amortization		6,375,929			762,151			—			7,138,080
Selling, general and administrative expenses, excluding depreciation and amortization ( a )		—			63,158			7,403,329			7,466,487
Depreciation and amortization ( b )		56,317			—			397,232			453,549
Income (loss) from operations ( c )		(1,647,638	)		(700,543	)		(7,800,561	)		(10,148,742	)
Other income (expense), excluding equity in the loss of R-NAV, LLC ( d )		—			—			2,786,007			2,786,007
Equity in the loss of R-NAV, LLC		—			—			(15,159	)		(15,159	)
Net loss from continuing operations		(1,647,638	)		(700,543	)		(5,029,713	)		(7,377,894	)
Loss from discontinued operations, net of tax effect		(6,931,137	)		—			—			(6,931,137	)
Net income (loss)		(8,578,775	)		(700,543	)		(5,029,713	)		(14,309,031	)
Total assets, net of depreciation and amortization:
United States	$	3,815,271		$	15,075		$	8,498,797		$	12,329,143
International		131,752			—			781			132,533
Capital expenditures		—			—			1,847			1,847

Year Ended December 31, 2015	Diagnostics			Therapeutics			Corporate			Total
Tc99m tilmanocept sales revenue:
United States	$	—		$	—		$	—		$	—
International		19,075			—			—			19,075
Tc99m tilmanocept license revenue		1,133,333			—			—			1,133,333
Grant and other revenue		1,860,953			—			—			1,860,953
Total revenue		3,013,361			—			—			3,013,361
Cost of goods sold, excluding depreciation and amortization		3,226			—			—			3,226
Research and development expenses, excluding depreciation and amortization		9,831,834			730,895			—			10,562,729
Selling, general and administrative expenses, excluding depreciation and amortization ( a )		—			123,884			10,242,066			10,365,950
Depreciation and amortization (b )		232,091			—			290,105			522,196
Loss from operations ( c )		(7,053,790	)		(854,779	)		(10,532,171	)		(18,440,740	)
Other income (expense), excluding equity in the loss of R-NAV, LLC ( d )		—			—			(4,298,604	)		(4,298,604	)
Equity in the loss of R-NAV, LLC		—			—			(305,253	)		(305,253	)
Net loss from continuing operations		(7,053,790	)		(854,779	)		(15,136,028	)		(23,044,597	)
Income from discontinued operations, net of tax effect ( e )		(5,713,598	)		—			1,194,660			(4,518,938	)
Net loss		(12,767,388	)		(854,779	)		(13,941,368	)		(27,563,535	)
Total assets, net of depreciation and amortization:
United States	$	4,161,029		$	—		$	10,391,805		$	14,552,834
International		410,666			—			1,013			411,679
Capital expenditures		26,589			—			12,412			39,001

(a)

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.

(

)

Depreciation and amortization is reflected in research and development (

and

$10,617

for the years ended

December 31, 2016

and

2015,

respectively), and selling, general and administrative expenses (

$397,232

and

$460,839

for the years ended

December 31, 2016

and

2015,

respectively).

(

)

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 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.

(

)

Amount

not

allocated to a reportable segment represents 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

(a).