ADMA Biologics, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

11. SEGMENTS

11. SEGMENTS

9 Months Ended

Sep. 30, 2017

The Company is engaged in the manufacture, marketing and development of specialty plasma-derived biologics. The Company’s operating segments reflect the consummation of the Biotest Transaction on June 6, 2017 (see Notes 1 and 3), and the nature of its operations subsequent to the close of the transaction. The Company’s ADMA BioManufacturing segment reflects the Company’s immune globulin manufacturing and development operations in Florida, acquired on June 6, 2017 (see Note 3). The Plasma Collection Centers segment consists of two FDA-licensed source plasma collection facilities located in Georgia, with a third collection center scheduled to open in late 2017 (see Note 10). The Corporate segment includes general and administrative overhead expenses. The Company defines its segments as those business units whose operating results are regularly reviewed by the chief operating decision maker (“CODM”) to analyze performance and allocate resources. The Company’s CODM is its President and Chief Executive Officer. Summarized financial information concerning reportable segments is shown in the following tables:

Three Months Ended September 30, 2017
	ADMA BioManufacturing			Plasma Collection Centers			Corporate			Consolidated

Revenues	$	1,879,921		$	2,813,782		$	35,708		$	4,729,411

Cost of product revenue		9,552,128			1,738,988			—			11,291,116

Gross (loss) profit		(7,672,207	)		1,074,794			35,708			(6,561,705	)

Loss from operations		(10,532,500	)		(507,900	)		(3,387,360	)		(14,427,760	)

Other expense, net		(237,548	)		—			(537,407	)		(774,955	)

Net loss		(10,770,048	)		(507,900	)		(3,924,767	)		(15,202,715	)

Total assets		55,452,496			3,517,274			13,843,710			72,813,480

Depreciation and amortization expense		723,098			102,263			10,710			836,071

Three Months Ended September 30, 2016
	ADMA BioManufacturing		Plasma Collection Centers			Corporate			Consolidated

Revenues	$	—	$	2,902,155		$	35,708		$	2,937,863

Cost of product revenue		—		1,735,771			—			1,735,771

Gross profit		—		1,166,384			35,708			1,202,092

Loss from operations		—		(316,202	)		(3,420,670	)		(3,736,872	)

Other expense, net		—		—			(594,367	)		(594,367	)

Net loss		—		(316,202	)		(4,015,037	)		(4,331,239	)

Total assets		—		2,707,636			24,787,750			27,495,386

Depreciation and amortization expense		—		103,493			13,815			117,308

Nine Months Ended September 30, 2017
	ADMA BioManufacturing			Plasma Collection Centers			Corporate			Consolidated

Revenues	$	2,419,144		$	8,231,414		$	107,125		$	10,757,683

Cost of product revenue		12,050,984			5,190,438			—			17,241,422

Gross (loss) profit		(9,631,840	)		3,040,976			107,125			(6,483,739	)

Loss from operations		(13,650,801	)		(1,621,364	)		(13,494,466	)		(28,766,631	)

Other expense, net		(299,535	)		—			(1,710,007	)		(2,009,542	)

Net loss		(13,950,336	)		(1,621,364	)		(15,204,473	)		(30,776,173	)

Capital expenditures		360,000			291,194			15,263			666,457

Depreciation and amortization expense		881,496			309,606			40,163			1,231,265

Nine Months Ended September 30, 2016
	ADMA BioManufacturing		Plasma Collection Centers			Corporate			Consolidated

Revenues	$	—	$	7,226,368		$	107,125		$	7,333,493

Cost of product revenue		—		4,346,433			—			4,346,433

Gross profit		—		2,879,935			107,125			2,987,060

Loss from operations		—		(1,177,371	)		(12,208,887	)		(13,386,258	)

Other expense, net		—		—			(1,569,785	)		(1,569,785	)

Net loss		—		(1,177,371	)		(13,778,672	)		(14,956,043	)

Capital expenditures		—		46,304			17,082			63,386

Depreciation and amortization expense		—		311,012			40,690			351,702