Quarterly report pursuant to Section 13 or 15(d)

Segments

Segments

3 Months Ended

Mar. 31, 2017

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.

Three Months Ended March 31, 2017	Diagnostics			Therapeutics			Corporate			Total
Tc 99m tilmanocept sales revenue:
United States	$	—		$	—		$	—		$	—
International		—			—			—			—
Tc 99m tilmanocept license revenue		—			—			—			—
Grant and other revenue		571,362			8,668			—			580,030
Total revenue		571,362			8,668			—			580,030
Cost of goods sold, excluding depreciation and amortization		—			—			—			—
Research and development expenses, excluding depreciation and amortization		413,202			292,072			—			705,274
Selling, general and administrative expenses, excluding depreciation and amortization (1)		—			2,521			2,943,123			2,945,644
Depreciation and amortization (2)		—			—			76,790			76,790
Income (loss) from operations (3)		158,160			(285,925	)		(3,019,913	)		(3,147,678	)
Other expense		—			—			(1,171,109	)		(1,171,109	)
Income tax (expense) benefit		(53,254	)		96,273			1,411,153			1,454,172
Net income (loss) from continuing operations		104,906			(189,652	)		(2,779,869	)		(2,864,615	)
Loss from discontinued operations, net of tax		(255,861	)		—			—			(255,861	)
Gain on sale of discontinued operations, net of tax		88,701,501			—			—			88,701,501
Net income (loss)		88,550,546			(189,652	)		(2,779,869	)		85,581,025
Total assets, net of depreciation and amortization:
United States		9,692,007			897			23,116,511			32,809,415
International		115,279			—			893			116,172
Capital expenditures		—			—			—			—

Three Months Ended March 31, 2016	Diagnostics			Therapeutics			Corporate			Total
Tc 99m tilmanocept sales revenue:
United States	$	—		$	—		$	—		$	—
International		8,800			—			—			8,800
Tc 99m tilmanocept license revenue		254,050			—			—			254,050
Grant and other revenue		685,635			—			—			685,635
Total revenue		948,485			—			—			948,485
Cost of goods sold, excluding depreciation and amortization		1,489			—			—			1,489
Research and development expenses, excluding depreciation and amortization		1,830,471			241,800			—			2,072,271
Selling, general and administrative expenses, excluding depreciation and amortization (1)		—			(598	)		2,558,758			2,558,160
Depreciation and amortization (2)		—			—			74,966			74,966
Loss from operations (3)		(883,475	)		(241,202	)		(2,633,724	)		(3,758,401	)
Other income (expense), excluding equity in loss of R-NAV, LLC (4)		—			—			1,088,824			1,088,824
Equity in loss of R-NAV, LLC		—			—			(12,239	)		(12,239	)
Net income (loss) from continuing operations		(883,475	)		(241,202	)		(1,557,139	)		(2,681,816	)
Loss from discontinued operations, net of tax		(1,004,433	)		—			—			(1,004,433	)
Net loss		(1,887,908	)		(241,202	)		(1,557,139	)		(3,686,249	)
Total assets, net of depreciation and amortization:
United States		4,273,762			16,515			7,610,817			11,901,094
International		380,982			—			1,605			382,587
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 ($76,790 and $74,966 for the three-month periods ended March 31, 2017 and 2016).

(3)	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.