Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

14.     Segment Information

The Company regularly reviews its segments and the approach used by management to evaluate performance and allocate resources. Prior to the third quarter of 2020, Legacy Celularity managed operations as one segment. The Company manages its operations through an evaluation of three distinct business segments: Cell Therapy, Degenerative Disease, and BioBanking. This change was prompted by certain organizational and personnel changes. The chief operating decision maker uses the revenues and earnings (losses) of the operating segments, among other factors, for performance evaluation and resource allocation among these segments.

The reportable segments were determined based on the distinct nature of the activities performed by each segment. Cell Therapy broadly refers to therapies the Company is researching and developing. Therapies being researched are unproven and in various phases of development. Degenerative Disease produces, sells and licenses products used in surgical and wound care markets. Biobanking collects stem cells from umbilical cords and placentas and provides storage of such cells on behalf of individuals for future use.

The Company manages its assets on a total company basis, not by operating segment. Therefore, the chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, asset information is not reported by operating segment. Total assets were $429,337 and $414,128 as of June 30, 2022 and December 31, 2021, respectively.

Financial information by segment for the three months ended June 30, 2022 and 2021 is as follows:

	Three Months Ended June 30, 2022
	Cell Therapy			BioBanking			Degenerative Disease			Other				Total
Net sales	$	-		$	1,373		$	2,403		$	-			$	3,776
Gross profit		-			108			489			-				597
Direct expenses		24,820			256			3,179			13,622				41,877
Segment contribution	$	(24,820	)	$	(148	)	$	(2,690	)		(13,622	)			(41,280	)
Indirect expenses											(45,455	)	(a)		(45,455	)
Income from operations														$	4,175
(a) Components of other
Change in fair value of contingent consideration liability											(45,047	)
Change in fair value of contingent stock consideration											(954	)
Amortization											546
Total other										$	(45,455	)

	Three Months Ended June 30, 2021
	Cell Therapy			BioBanking		Degenerative Disease			Other				Total
Net sales	$	-		$	1,597	$	1,600		$	-			$	3,197
Gross profit		-			1,029		728			-				1,757
Direct expenses		22,105			742		2,150			26,777				51,774
Segment contribution	$	(22,105	)	$	287	$	(1,422	)		(26,777	)			(50,017	)
Indirect expenses										10,594		(b)		10,594
Loss from operations													$	(60,611	)
(b) Components of other
Change in fair value of contingent consideration liability										10,048
Amortization										546
Total other									$	10,594

Financial information by segment for the six months ended June 30, 2022 and 2021 is as follows:

	Six Months Ended June 30, 2022
	Cell Therapy			BioBanking			Degenerative Disease			Other				Total
Net sales	$	-		$	2,656		$	7,055		$	-			$	9,711
Gross profit		-			443			2,063			-				2,506
Direct expenses		46,033			882			4,638			26,892				78,445
Segment contribution	$	(46,033	)	$	(439	)	$	(2,575	)		(26,892	)			(75,939	)
Indirect expenses											(38,500	)	(c)		(38,500	)
Loss from operations														$	(37,439	)
(c) Components of other
Change in fair value of contingent consideration liability											(40,198	)
Change in fair value of contingent stock consideration											611
Amortization											1,087
Total other										$	(38,500	)

	Six Months Ended June 30, 2021
	Cell Therapy			BioBanking		Degenerative Disease			Other				Total
Net sales	$	-		$	2,861	$	2,996		$	-			$	5,857
Gross profit		-			1,569		1,606			-				3,175
Direct expenses		38,392			994		4,164			32,840				76,390
Segment contribution	$	(38,392	)	$	575	$	(2,558	)		(32,840	)			(73,215	)
Indirect expenses										31,791		(d)		31,791
Loss from operations													$	(105,006	)
(d) Components of other
Change in fair value of contingent consideration liability										30,704
Amortization										1,087
Total other									$	31,791