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

6 Months Ended

Jun. 30, 2017

The Company is engaged in the development, manufacturing and commercialization of human plasma and plasma-derived therapeutics. 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 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 June 30, 2017
	ADMA BioManufacturing			Plasma Collection Centers			Corporate			Consolidated

Revenues	$	539,223		$	2,824,470		$	35,708		$	3,399,401

Cost of product revenue		2,498,856			1,835,163			—			4,334,019

Gross (loss) profit		(1,959,633	)		989,307			35,708			(934,618	)

Loss from operations		(3,118,300	)		(610,864	)		(4,672,704	)		(8,401,868	)

Other expense, net		(61,987	)		—			(572,640	)		(634,627	)

Net loss		(3,180,287	)		(610,864	)		(5,245,344	)		(9,036,495	)

Total assets		65,913,839			2,101,977			16,623,437			84,639,253

Depreciation and amortization expense		158,398			103,703			15,031			277,132

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

Revenues	$	—	$	2,236,036		$	35,708		$	2,271,744

Cost of product revenue		—		1,344,241			—			1,344,241

Gross profit		—		891,795			35,708			927,503

Loss from operations		—		(402,507	)		(5,088,343	)		(5,490,850	)

Other expense, net		—		—			(521,485	)		(521,485	)

Net loss		—		(402,507	)		(5,609,828	)		(6,012,335	)
		—
Total assets		—		2,509,903			29,232,086			31,741,989

Depreciation and amortization expense		—		102,330			13,671			116,001

Six Months Ended June 30, 2017
	ADMA BioManufacturing			Plasma Collection Centers			Corporate			Consolidated

Revenues	$	539,223		$	5,417,632		$	71,417		$	6,028,272

Cost of product revenue		2,498,856			3,451,450			—			5,950,306

Gross profit		(1,959,633	)		1,966,182			71,417			77,966

Loss from operations		(3,118,300	)		(1,113,464	)		(10,107,107	)		(14,338,871	)

Other expense, net		(61,987	)		—			(1,172,600	)		(1,234,587	)

Net loss		(3,180,287	)		(1,113,464	)		(11,279,707	)		(15,573,458	)

Capital expenditures		—			81,294			15,263			96,557

Depreciation and amortization expense		158,398			207,343			29,453			395,194

Six Months Ended June 30, 2016
	ADMA BioManufacturing		Plasma Collection Centers			Corporate			Consolidated

Revenues	$	—	$	4,324,213		$	71,417		$	4,395,630

Cost of product revenue		—		2,610,662			—			2,610,662

Gross profit		—		1,713,551			71,417			1,784,968

Loss from operations		—		(861,169	)		(8,788,217	)		(9,649,386	)

Other expense, net		—		—			(975,418	)		(975,418	)

Net loss		—		(861,169	)		(9,763,635	)		(10,624,804	)
		—
Capital expeditures		—		32,733			25,301			58,034

Depreciation and amortization expense		—		207,519			26,875			234,394

The “Corporate” column above includes general and administrative overhead expenses. Total assets included in the “Corporate” column above includes assets related to corporate and support functions.