Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

15.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 $437,116 and $414,128 as of September 30, 2022 and December 31, 2021, respectively.

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

	Three Months Ended September 30, 2022
	Cell Therapy			BioBanking		Degenerative Disease			Other				Total
Net sales	$	-		$	1,405	$	2,730		$	-			$	4,135
Gross profit		-			506		(3,584	)		-				(3,078	)
Direct expenses		19,863			432		3,194			11,965				35,454
Segment contribution	$	(19,863	)	$	74	$	(6,778	)		(11,965	)			(38,532	)
Indirect expenses										(32,886	)	(a)		(32,886	)
Loss from operations													$	(5,646	)
(a) Components of other
Change in fair value of contingent consideration liability										(33,243	)
Change in fair value of contingent stock consideration										(196	)
Amortization										553
Total other									$	(32,886	)

	Three Months Ended September 30, 2021
	Cell Therapy			BioBanking			Degenerative Disease		Other				Total
Net sales	$	-		$	1,343		$	9,279	$	-			$	10,622
Gross profit		-			420			7,891		-				8,311
Direct expenses		22,690			505			2,601		19,613				45,409
Segment contribution	$	(22,690	)	$	(85	)	$	5,290		(19,613	)			(37,098	)
Indirect expenses										(47,996	)	(b)		(47,996	)
Income from operations													$	10,898
(b) Components of other
Change in fair value of contingent consideration liability										(48,549	)
Amortization										553
Total other									$	(47,996	)

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

	Nine Months Ended September 30, 2022
	Cell Therapy			BioBanking			Degenerative Disease			Other				Total
Net sales	$	-		$	4,061		$	9,785		$	-			$	13,846
Gross profit		-			949			(1,521	)		-				(572	)
Direct expenses		65,896			1,314			7,832			38,857				113,899
Segment contribution	$	(65,896	)	$	(365	)	$	(9,353	)		(38,857	)			(114,471	)
Indirect expenses											(71,386	)	(c)		(71,386	)
Loss from operations														$	(43,085	)
(c) Components of other
Change in fair value of contingent consideration liability											(73,441	)
Change in fair value of contingent stock consideration											415
Amortization											1,640
Total other										$	(71,386	)

	Nine Months Ended September 30, 2021
	Cell Therapy			BioBanking		Degenerative Disease		Other				Total
Net sales	$	-		$	4,204	$	12,275	$	-			$	16,479
Gross profit		-			1,986		9,500		-				11,486
Direct expenses		61,082			1,499		6,765		52,453				121,799
Segment contribution	$	(61,082	)	$	487	$	2,735		(52,453	)			(110,313	)
Indirect expenses									(16,205	)	(d)		(16,205	)
Loss from operations												$	(94,108	)
(d) Components of other
Change in fair value of contingent consideration liability									(17,845	)
Amortization									1,640
Total other								$	(16,205	)