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Segments and Geographic Information
9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Segments and Geographic Information

11. Segments and Geographic Information

The Company’s chief operating decision-maker reviews financial information presented on a consolidated basis, accompanied by disaggregated information by each reportable company’s statement of operations. The Company operates the business on the basis of three reporting segments, the parent company and two wholly-owned subsidiaries:

International Stem Cell Corporation, a research and development company, for the Therapeutic Market for clinical applications of hpSCs for the treatment of various diseases such as Parkinson’s disease, liver diseases and corneal blindness;

Lifeline Skin Care, Inc. for the Cosmeceutical Market, which develops, manufactures and markets a category of cosmetic skin care products based on biotechnology with human stem cells;

Lifeline Cell Technology, LLC for the Biomedical Market, which develops, manufactures and commercializes primary human cell research products including over 130 human cell culture products, including frozen human “primary” cells and the reagents (called “media”) needed to grow, maintain and differentiate the cells.

Revenues, Expenses and Operating Income (loss)

The Company does not measure the performance of its segments on any asset-based metrics. Therefore, segment information is presented only for operating income (loss). Revenues, expenses and operating income (loss) by market segment were as follows (in thousands):

 

 

For the Three Months

 

 

For the Nine Months

 

 

Ended September 30,

 

 

Ended September 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cosmeceutical market

$

970

 

 

$

810

 

 

$

2,519

 

 

$

2,169

 

Biomedical market

 

993

 

 

 

860

 

 

 

2,681

 

 

 

2,243

 

Total revenues

 

1,963

 

 

 

1,670

 

 

 

5,200

 

 

 

4,412

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Therapeutic market

 

2,458

 

 

 

1,900

 

 

 

7,067

 

 

 

6,071

 

Cosmeceutical market

 

837

 

 

 

787

 

 

 

2,410

 

 

 

2,129

 

Biomedical market

 

702

 

 

 

686

 

 

 

2,065

 

 

 

1,821

 

Total operating expenses

 

3,997

 

 

 

3,373

 

 

 

11,542

 

 

 

10,021

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Therapeutic market

 

(2,458

)

 

 

(1,900

)

 

 

(7,067

)

 

 

(6,071

)

Cosmeceutical market

 

133

 

 

 

23

 

 

 

109

 

 

 

40

 

Biomedical market

 

291

 

 

 

174

 

 

 

616

 

 

 

422

 

Total operating income (loss)

$

(2,034

)

 

$

(1,703

)

 

$

(6,342

)

 

$

(5,609

)

 

Geographic Information

The Company’s wholly-owned subsidiaries are located in Maryland and California, and have customer and vendor relationships worldwide. Significant revenues in the following regions are those that are attributable to the individual countries within the region to which the product was shipped (in thousands):

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

North America

$

1,519

 

 

$

1,280

 

 

$

4,186

 

 

$

3,362

 

Asia

 

332

 

 

 

283

 

 

 

672

 

 

 

704

 

Europe

 

98

 

 

 

66

 

 

 

309

 

 

 

254

 

All other regions

 

14

 

 

 

41

 

 

 

33

 

 

 

92

 

Total

$

1,963

 

 

$

1,670

 

 

$

5,200

 

 

$

4,412