Quarterly report pursuant to Section 13 or 15(d)

Segments

v3.4.0.3
Segments
3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Segments

13.

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 Lymphoseek and other diagnostic applications of our Manocept platform, our R-NAV subsidiary, 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, 2016

 

Diagnostics

 

 

Therapeutics

 

 

Corporate

 

 

Total

 

Lymphoseek sales revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States (1)

 

$

3,771,420

 

 

$

 

 

$

 

 

$

3,771,420

 

International

 

 

11,260

 

 

 

 

 

 

 

 

 

11,260

 

Lymphoseek license revenue

 

 

254,050

 

 

 

 

 

 

 

 

 

254,050

 

Grant and other revenue

 

 

685,825

 

 

 

 

 

 

 

 

 

685,825

 

Total revenue

 

 

4,722,555

 

 

 

 

 

 

 

 

 

4,722,555

 

Cost of goods sold, excluding depreciation and amortization

 

 

494,639

 

 

 

 

 

 

 

 

 

494,639

 

Research and development expenses,

   excluding depreciation and amortization

 

 

2,417,720

 

 

 

241,800

 

 

 

 

 

 

2,659,520

 

Selling, general and administrative expenses,

   excluding depreciation and amortization (2)

 

 

1,012,106

 

 

 

(598

)

 

 

2,975,850

 

 

 

3,987,358

 

Depreciation and amortization (3)

 

 

40,290

 

 

 

 

 

 

109,302

 

 

 

149,592

 

Loss from operations (4)

 

 

757,800

 

 

 

(241,202

)

 

 

(3,085,152

)

 

 

(2,568,554

)

Other income (expense), excluding

   equity in the loss of R-NAV, LLC (5)

 

 

 

 

 

 

 

 

(1,105,456

)

 

 

(1,105,456

)

Equity in the loss of R-NAV, LLC

 

 

 

 

 

 

 

 

(12,239

)

 

 

(12,239

)

Net loss

 

 

757,800

 

 

 

(241,202

)

 

 

(4,202,847

)

 

 

(3,686,249

)

Total assets, net of depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

4,109,640

 

 

 

16,515

 

 

 

7,774,939

 

 

 

11,901,094

 

International

 

 

380,982

 

 

 

 

 

 

1,605

 

 

 

382,587

 

Capital expenditures

 

 

 

 

 

 

 

 

1,847

 

 

 

1,847

 

 

Three Months Ended March 31, 2015

 

Diagnostics

 

 

Therapeutics

 

 

Corporate

 

 

Total

 

Lymphoseek sales revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States (1)

 

$

1,831,022

 

 

$

 

 

$

 

 

$

1,831,022

 

International

 

 

4,400

 

 

 

 

 

 

 

 

 

4,400

 

Lymphoseek license revenue

 

 

83,333

 

 

 

 

 

 

 

 

 

83,333

 

Grant and other revenue

 

 

189,701

 

 

 

 

 

 

 

 

 

189,701

 

Total revenue

 

 

2,108,456

 

 

 

 

 

 

 

 

 

2,108,456

 

Cost of goods sold, excluding depreciation and amortization

 

 

420,551

 

 

 

 

 

 

 

 

 

420,551

 

Research and development expenses,

   excluding depreciation and amortization

 

 

3,890,724

 

 

 

86,014

 

 

 

 

 

 

3,976,738

 

Selling, general and administrative expenses,

   excluding depreciation and amortization (2)

 

 

2,042,175

 

 

 

14,366

 

 

 

3,320,861

 

 

 

5,377,402

 

Depreciation and amortization (3)

 

 

33,056

 

 

 

 

 

 

116,766

 

 

 

149,822

 

Loss from operations (4)

 

 

(4,278,050

)

 

 

(100,380

)

 

 

(3,437,627

)

 

 

(7,816,057

)

Other income (expense), excluding

   equity in the loss of R-NAV, LLC (5)

 

 

 

 

 

 

 

 

787,059

 

 

 

787,059

 

Equity in the loss of R-NAV, LLC

 

 

 

 

 

 

 

 

(262,227

)

 

 

(262,227

)

Net loss

 

 

(4,278,050

)

 

 

(100,380

)

 

 

(2,912,795

)

 

 

(7,291,225

)

Total assets, net of depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

3,333,851

 

 

 

7,409

 

 

 

7,077,673

 

 

 

10,418,933

 

International

 

 

496,311

 

 

 

 

 

 

2,665

 

 

 

498,976

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

All sales to Cardinal Health are made in the United States; Cardinal distributes the product throughout the U.S. through its network of nuclear pharmacies.

 

(2)

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.

 

(3)

Depreciation and amortization is reflected in cost of goods sold ($40,290 and $28,506 for the three-month periods ended March 31, 2016 and 2015), research and development ($0 and $4,550 for the three-month periods ended March 31, 2016 and 2015), and selling, general and administrative expenses ($109,302 and $116,765 for the three-month periods ended March 31, 2016 and 2015).

 

(4)

Loss from operations does not reflect the allocation of certain selling, general and administrative expenses, excluding depreciation and amortization, to our individual reportable segments.

 

(5)

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.