Note 11. Segment Reporting

We currently operate in two reportable segments: Global Logistics Solutions and Global Bioservices. The Global Logistics Solutions segment provides temperature-controlled logistics solutions to the life sciences industry through its purpose-built proprietary packaging, information technology and specialized cold chain logistics expertise. The Company provides leading edge logistics solutions to the biopharma, reproductive medicine and animal health markets to ship, store and deliver biologic materials, such as immunotherapies, stem cells, CAR-T cell therapies, vaccines and reproductive cells for clients worldwide. The Global Bioservices segment provides a comprehensive temperature-controlled sample management solution to the life science industry, including specimen storage, sample processing, collection, and retrieval. The spectrum of temperature-controlled solutions provided by the Company ranges from ambient, or controlled room temperature (20°C to 25°C), refrigerated (2°C to 8°C), to frozen and cryogenic (below 0°C to as low as −150°C). Our Chief Executive Officer is the chief operating decision maker for both segments.

The Company derives the results of the segments directly from its internal management reporting system. The accounting policies of the operating segments are substantially the same as those described in the summary of significant accounting policies. The Company evaluates segment performance on the basis of revenues and profit or loss. Management uses these operating results, in part, to evaluate the performance of, and to allocate resources to, each of the segments.

The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different sales and marketing strategies and operational skillsets. The Global Bioservices segment is currently comprised of the Cryogene business that was acquired in May 2019 (see Note 13), and the management at the time of the acquisition was retained. Prior to this acquisition, the Company had a single reportable segment: Global Logistics Solutions and therefore only the segment information for the year ended December 31, 2019 is disclosed.

Reportable segment information is presented in the following table:


	Year Ended December 31, 2019
	Global Logistics		Global
	Solutions		Bioservices		Total
Revenues	$	30,913,345	$	3,028,555	$	33,941,900
Interest expense		(1,366,924)		—		(1,366,924)
Depreciation and amortization expense		(1,466,907)		(948,315)		(2,415,222)
Segment operating profit or loss		(18,112,163)		437,118		(17,675,045)
Other significant items:
Segment assets		110,594,220		25,241,256		135,835,476
Goodwill		—		10,999,722		10,999,722
Expenditures for long-lived assets		(4,494,066)		(1,102,416)		(5,596,482)

Revenues from one customer of the Company’s Global Bioservices segment represents approximately 80.2% of that segment’s net revenues, however, it was less than 10% of the Company’s consolidated net revenues for the year ended December 31, 2019.