Segment Information

3 Months Ended

12 Months Ended

Mar. 31, 2022

Dec. 31, 2021

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 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 $434,202 and $414,128 as of March 31, 2022 and December 31, 2021, respectively.

Financial information by segment for the three months ended March 31, 2022 and 2021 is as follows:

	Three Months Ended March 31, 2022
	Cell Therapy			BioBanking			Degenerative Disease		Other					Total
Net sales	$			$	1,283		$	4,652	$	—				$	5,935
Gross profit		—			335			1,574		—					1,909
Direct expenses		21,213			626			1,459		13,270					36,568
Segment contribution		(21,213	)		(291	)		115		(13,270	)				(34,659	)
Indirect expenses										6,955		(c	)		6,955
Loss from operations														$	(41,614	)
(c) Components of other
Change in fair value of contingent consideration liability										4,849
Change in fair value of contingent stock consideration										1,565
Amortization										541
Total other									$	6,955

	Three Months Ended March 31, 2021
	Cell Therapy			BioBanking		Degenerative Disease			Other					Total
Net sales	$	—		$	1,264	$	1,396		$	—				$	2,660
Gross profit		—			540		878			—					1,418
Direct expenses		16,287			252		2,014			6,063					24,616
Segment contribution		(16,287	)		288		(1,136	)		(6,063	)				(23,198	)
Indirect expenses										21,197		(d	)		21,197
Loss from operations														$	(44,395	)
(d) Components of other
Change in fair value of contingent consideration liability										20,656
Impairment of acquired intangible assets										—
Amortization										541
Total other									$	21,197

18. 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, the Company managed operations as one segment. In the third quarter of 2020, the Company began to manage 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 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 approximately $414,128 and $431,008 as of December 31, 2021 and 2020, respectively.

Financial information by segment is as follows:

	Year Ended December 31, 2021
	Cell Therapy			BioBanking			Degenerative Disease		Other			Total
Net revenues	$	—		$	5,522		$	15,813	$	—		$	21,335
Gross profit		—			1,873			9,809		—			11,682
Direct expenses		85,107			2,119			8,450		64,017			159,693
Segment contribution		(85,107	)		(246	)		1,359		(64,017	)		(148,011	)
Indirect expenses										(38,953	)(a)	$	(38,953	)
Loss from operations													(109,058	)
(a) Components of other
Change in fair value of contingent consideration liability										(41,145	)
Amortization										2,192
Total other									$	(38,953	)

	Year Ended December 31, 2020
	Cell Therapy			BioBanking		Degenerative Disease			Other			Total
Net revenues	$	—		$	5,556	$	8,722		$	—		$	14,278
Gross profit		—			3,262		6,084			—			9,346
Direct expenses		51,470			1,653		10,348			20,573			84,043
Segment contribution		(51,470	)		1,609		(4,264	)		(20,573	)		(74,697	)
Indirect expenses										77,228	(a)	$	77,228
Loss from operations													(151,925	)
(a) Components of other
Change in fair value of contingent consideration liability										(55,566	)
Impairment of acquired intangible assets										129,400
Amortization										3,394
Total other									$	77,228