Note 6. Operating segment information
The chief operating decision-maker (“CODM”), who is responsible for allocating resources and assessing performance of the Group, has been identified as the Board of Directors that makes strategic decisions. Since 2015, the group is reporting two operating segments, respectively the cardiology segment, regrouping the Cardiopoiesis platform, the Corquest platform and C-Cathez, and the immuno-oncology segment regrouping all assets developed based on the platform acquired from OnCyte, LLC.
Although the Group is currently active in Europe and in the US, no geographical financial information is currently available given the fact that the core operations are currently still in a study phase. No disaggregated information on product level or geographical level or any other level is currently existing and hence also not considered by the Board for assessing performance or allocating resources.
CODM is not reviewing assets by segments, hence no segment information per assets is disclosed. As per 31 December 2017, all of the Group non-current assets are located in Belgium, except (i) the goodwill and IPRD of OnCyte also located in the US and (ii) the leasehold improvements made in the offices of Celyad Inc. located in Boston, Massachusetts, USA.
In 2015, the management and the CODM have determined that as from 2015, there are two operating segments, respectively the cardiology segment, regrouping the Cardiopoiesis platform, the Corquest platform and C-Cathez, and the immuno-oncology segment regrouping all assets developed based on the platform acquired from OnCyte, LLC.
Although the Group is currently active in Europe and in the US, no geographical financial information is currently available given the fact that the core operations are currently still in a study phase. No disaggregated information on product level or geographical level or any other level is currently existing and hence also not considered by the Board for assessing performance or allocating resources.
CODM is not reviewing assets by segments, hence no segment information per assets is disclosed. As per 31 December 2016, all of the Group non-current assets are located in Belgium, except (i) the Corquest intellectual property, valued at €1,5 million which is located in the US, (ii) the goodwill and IPRD of OnCyte also located in the US and (iii) the leasehold improvements made in the offices of Celyad Inc. located in Boston, Massachusetts, USA.
During 2015, marginal revenues were generated from external customers. All revenues generated relate to sales of C-Cathez to a limited number of customers located in the US.
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€‘000 |
For the year ended December 31, 2015 | |||||||||||||||
| Cardiology | Immuno- oncology |
Corporate | Group Total | |||||||||||||
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Revenue |
3 | 3 | ||||||||||||||
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Cost of Sales |
(1 | ) | (1 | ) | ||||||||||||
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Gross Profit |
2 | — | — | 2 | ||||||||||||
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Research & Development expenses |
(20,634 | ) | (2,132 | ) | (22,766 | ) | ||||||||||
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General & Administrative expenses |
— | — | (7,230 | ) | (7,230 | ) | ||||||||||
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Other operating Income & Charges |
218 | 104 | 322 | |||||||||||||
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Operating Profit (Loss) |
(20,414 | ) | (2,028 | ) | (7,230 | ) | (29,672 | ) | ||||||||
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Net Financial Charges |
— | — | 306 | 306 | ||||||||||||
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Share of Loss of investments accounted for using the equity method |
— | — | 252 | 252 | ||||||||||||
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Profit (Loss) before taxes |
(20,414 | ) | (2,028 | ) | (6,672 | ) | (29,114 | ) | ||||||||
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Income Taxes |
— | — | — | — | ||||||||||||
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Profit (Loss) for the year 2015 |
(20,414 | ) | (2,028 | ) | (6,672 | )) | (29.114 | ) | ||||||||
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In August 2016, the Group has received a non-refundable upfront payment as a result of the ONO agreement. This upfront payment has been fully recognised upon receipt as there are no performance obligations nor subsequent deliverables associated to the payment. The non-refundable upfront payment was rather received as a consideration for the sale of licence to ONO. In 2016, the total revenue generated through sales of C-Cathez was € 0.1 million.
| €‘000 | For the year ended December 31, 2016 | |||||||||||||||
| Cardiology | Immuno- oncology |
Corporate | Group Total | |||||||||||||
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Revenue |
84 | 8,440 | 8,523 | |||||||||||||
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Cost of Sales |
(53 | ) | (53 | ) | ||||||||||||
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Gross Profit |
31 | 8,440 | — | 8,471 | ||||||||||||
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Research & Development expenses |
(12,704 | ) | (14,971 | ) | (27,675 | ) | ||||||||||
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General & Administrative expenses |
— | — | (9,744 | ) | (9,744 | ) | ||||||||||
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Other operating Income & Charges |
1,540 | 1,800 | 3,340 | |||||||||||||
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Operating Profit (Loss) |
(11,133 | ) | (4,731 | ) | (9,744 | ) | (25,609 | ) | ||||||||
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Net Financial Charges |
— | — | 1,997 | 1,997 | ||||||||||||
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Profit (Loss) before taxes |
(11,133 | ) | (4,731 | ) | (7,747 | ) | (23,612 | ) | ||||||||
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Income Taxes |
— | — | 6 | 6 | ||||||||||||
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Profit (Loss) for the year 2016 |
(11,133 | ) | (4,731 | ) | (7,742 | ) | (23,606 | ) | ||||||||
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In 2017, there were some important one-time non-recurrent items impacting significantly the consolidated income statement. The Board decided to isolate these non-recurrent items in the presentation of the consolidated income statement.
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€‘000 |
For the year ended December 31, 2017 | |||||||||||||||
| Cardiology | Immuno- oncology |
Corporate | Group Total | |||||||||||||
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Revenues |
35 | 3,505 | 3,540 | |||||||||||||
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Cost of Sales |
(515 | ) | (515 | ) | ||||||||||||
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Gross Profit |
35 | 2,990 | — | 3,025 | ||||||||||||
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Research & Development expenses |
(2,881 | ) | (20,027 | ) | — | (22,908 | ) | |||||||||
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General & Administrative expenses |
— | — | (9,310 | ) | (9,310 | ) | ||||||||||
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Other operating Income & Charges |
1,070 | 151 | 1,370 | 2,590 | ||||||||||||
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Non-recurring operating (expenses)/income |
(1,932 | ) | — | (24,341 | ) | (26,273 | ) | |||||||||
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Operating Profit (Loss)—EBIT |
(3,708 | ) | (16,886 | ) | (32,281 | ) | (52,876 | ) | ||||||||
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Net Financial Charges |
— | — | (3,518 | ) | (3,518 | ) | ||||||||||
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Profit (Loss) before taxes |
(3,708 | ) | (16,886 | ) | (35,799 | ) | (56,396 | ) | ||||||||
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Income Taxes |
— | — | 1 | 1 | ||||||||||||
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Profit (Loss) for the year 2017 |
(3,708 | ) | (16,886 | ) | (35,798 | ) | (56,395 | ) | ||||||||
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