Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

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, Legacy Celularity managed operations as one segment. In the third quarter of 2020, Legacy Celularity 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 $448,286 and $431,008 as of September 30, 2021 and December 31, 2020, respectively.

Financial information by segment for the three months ended September 30, 2021 and 2020 is as follows:

	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	)	(a)		(47,996	)
Income from operations													$	10,898
(a) Components of other
Change in fair value of contingent consideration liability										(48,549	)
Amortization										553
Total other									$	(47,996	)

	Three Months Ended September 30, 2020
	Cell Therapy			BioBanking			Degenerative Disease			Other				Total
Net sales	$	-		$	1,399		$	1,956		$	-			$	3,355
Gross profit		-			710			1,612			-				2,322
Direct expenses		10,913			806			2,177			5,648				19,544
Segment contribution		(10,913	)		(96	)		(565	)		(5,648	)			(17,222	)
Indirect expenses											(12,416	)	(b)		(12,416	)
Loss from operations														$	(4,806	)
(b) Components of other
Change in fair value of contingent consideration liability											(142,599	)
Impairment of acquired intangible assets											129,400
Amortization											783
Total other										$	(12,416	)

Financial information by segment for the nine months ended September 30, 2021 and 2020 is as follows:

	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	)	(c)		(16,205	)
Loss from operations												$	(94,108	)
(c) Components of other
Change in fair value of contingent consideration liability									(17,845	)
Amortization									1,640
Total other								$	(16,205	)

	Nine Months Ended September 30, 2020
	Cell Therapy			BioBanking		Degenerative Disease			Other				Total
Net sales	$	-		$	4,213	$	6,822		$	-			$	11,035
Gross profit		-			2,445		4,828			-				7,273
Direct expenses		38,185			1,943		8,635			15,383				64,146
Segment contribution		(38,185	)		502		(3,807	)		(15,383	)			(56,873	)
Indirect expenses										106,107		(d)		106,107
Loss from operations													$	(162,980	)
(d) Components of other
Change in fair value of contingent consideration liability										(26,136	)
Impairment of acquired intangible assets										129,400
Amortization										2,843
Total other									$	106,107