Annual report pursuant to Section 13 and 15(d)

SEGMENT INFORMATION

v3.10.0.1
SEGMENT INFORMATION
12 Months Ended
Nov. 30, 2018
SEGMENT INFORMATION [Text Block]

NOTE 5 - SEGMENT INFORMATION

     The Chief Executive Officer ("CEO") is the Company’s chief operating decision-maker ("CODM"). Management has determined that there are two operating segments, based on the Company's organizational structure, its business activities and information reviewed by the CODM for the purposes of allocating resources and assessing performance.

CDMO

     The CDMO platform is comprised of a specialization in cell therapy development and comprised of two types of services to its customers: (i) manufacturing and development services and (ii) cGMP contract manufacturing services. The CDMO platform operates through Masthercell Global, which currently consists of MaSTherCell in Belgium, Atvio in Israel and CureCell in South Korea, having unique know-how and expertise for manufacturing in a multitude of cell types. The CDMO activities include the operations of Masthercell Global, Atvio and CureCell from the date of the Corporate Reorganization.

PT Business

Through the PT business, the Company is focused on the development of proprietary cell and gene therapies, including the autologous trans-differentiation technology, and therapeutic collaborations and licensing with other pre-clinical and clinical-stage biopharmaceutical companies and research and healthcare institutes.

     The CODM does not review assets by segment, therefore the measure of assets has not been disclosed for each segment.

     Segment data for the year ended November 30, 2018 is as follows:

                Corporate        
          PT     and        
    CDMO     Business     Eliminations     Consolidated  
    (in thousands)  
Revenues from external customers $ 22,582   $   -   $ (3,927 ) $ 18,655  
Cost of revenues   (11,541 )         1,235     (10,306 )
Segment gross profit (loss)   11,041     -     (2,692     8,349  
Research and development expenses, net   (39 )   (7,931 )   2,485     (5,485 )
Operating expenses   (6,889 )   (6,224 )   207     (12,906 )
Other expenses   (77 )   -           (77 )
Segment operating profit (loss)   4,036     (14,155 )   -     (10,119 )
Adjustments to presentation of segment Adjusted EBIT                    
     Depreciation and amortization   (2,613 )   (11 )         (2,624 )
Segment performance   1,423     (14,166 )         (12,743 )

Reconciliation of segment performance to loss for the year:

    Year ended  
    November 30,  
    2018  
    in thousands  
Segment subtotal performance   (12,743 )
Stock-based compensation   (4,364 )
Financial expenses, net   (2,938 )
Net gain on remeasurement of previously equity interest in Atvio and CureCell to acquisition date fair value   4,509  
Transaction expenses related to GPP agreement   (1,500 )
Share in losses of associated companies   (731 )
Loss before income tax   (17,767 )

Segment data for the year ended November 30, 2017 is as follows:

                Corporate        
          CT     and        
    CDMO     Business     Eliminations     Consolidated  
    (in thousands)  
Revenues from external customers $ 11,484   $   -   $ (1,395 ) $ 10,089  
Cost of revenues   (6,356 )         638     (5,718 )
Gross profit   5,128     -     (757 )   4,371  
Research and development expenses, net         (2,517 )   757     (1,760 )
Operating expenses   (4,699 )   (3,335 )         (8,034 )
Operating profit   429     (5,852 )   -     (5,423 )
Adjustments to presentation of segment Adjusted EBIT                        
     Depreciation and amortization               (2,720 )   (6 )
Segment performance               (2,291 )   (5,858 )
Reconciliation of segment performance to loss for the year:   Year ended  
    November 30,  
    2017  
       
    in thousands  
    Segment performance   (8,149 )
   Stock-based compensation   (3,364 )
   Financial income (expenses), net   (950 )
   Share in losses of associated company   (1,214 )
   Loss before income tax $ (13,677 )

Geographic, Product and Customer Information

     Substantially all the Company's revenues and long-lived assets are located in Belgium through its subsidiary, MaSTherCell. Net revenues from single customers from the CDMO segment that exceed 10% of total net revenues are:

    Year Ended     Year Ended  
    November 30,     November 30,  
    2018     2017  
    (in thousands)  
Customer A $ 2,338   $ 4,115  
Customer B $ 4,374   $ 2,837  
Customer C $   -   $ 2,055  
Customer D $ 5,236   $   -  
Customer E $ 2,242   $   -  

     The CDMO business has substantially diversified revenues by source signing contracts with biotech companies in their respective cell-based therapy field.