v3.26.1
Segment Reporting
3 Months Ended
Mar. 31, 2026
Segment Reporting  
Segment Reporting

Note 16. Segment Reporting

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker (“CODM”) in making decisions regarding resource allocation and assessing performance. The CODM is the Company’s Chief Executive Officer.

“Adjusted EBITDA,” which is defined by the Company as earnings before interest, income taxes, depreciation, amortization and certain items that do not contribute directly to management’s evaluation of its operating results, is the profit measure used by the CODM for each operating segment in measuring the performance of the business and in the annual budget and forecasting process. Asset information by reportable segment is not provided to the CODM.

We have two operating segments that are aggregated under our Life Sciences Services reportable segment, which provides temperature-controlled logistics, biostorage, bioservices and cryopreservation services within the life science industry through direct sales. Revenue from this reportable segment is primarily comprised of Life Sciences Services revenue and includes certain immaterial revenue from the sale of accessories that constitute Life Sciences Products revenue. The Company’s Life Sciences Products reportable segment manufactures and sells cryogenic systems, such as freezers and cryogenic dewars and related ancillary accessories used in the storage and transport of life science commodities through direct sales or a distribution network. Revenue from this reportable segment is exclusively Life Sciences Products revenue.

In addition, the CODM manages and evaluates the operating performance of the segments, as described above, on a pre-corporate cost allocation basis. Accordingly, for segment reporting purposes, the Company does not allocate corporate costs, which include certain aspects of the Company’s executive management, legal, compliance, human resources, information technology and finance departments, to its reportable segments.  

Information about our segments is as follows (in thousands):

Three Months Ended March 31, 2026

Three Months Ended March 31, 2025

  ​ ​ ​

Life Sciences Services

  ​ ​ ​

Life Sciences Products

  ​ ​ ​

Total

  ​ ​ ​

Life Sciences Services

  ​ ​ ​

Life Sciences Products

  ​ ​ ​

Total

  ​ ​ ​

Revenue from external customers 1

$

27,435

$

20,363

$

47,798

$

23,213

$

17,827

$

41,040

Intersegment revenue

 

478

 

494

 

972

 

245

 

150

 

395

27,913

20,857

48,770

23,458

17,977

41,435

Reconciliation of revenue

Elimination of intersegment revenue

(972)

(395)

Total consolidated revenue

47,798

41,040

Less:

Cost of revenue 1, 2

7,050

9,069

6,660

7,333

Employee related expenses

14,862

5,954

13,051

5,435

Engineering and development expense 3

202

513

983

412

Rent

1,851

178

1,803

187

Other segment items 4

4,044

1,476

3,445

1,100

Adjusted EBITDA for reportable segments

$

(96)

$

3,667

$

3,571

$

(2,484)

$

3,510

$

1,026

Corporate overhead costs

(4,182)

(3,845)

Depreciation and amortization expense

(6,402)

(6,134)

Acquisition and integration costs

-

(1)

Cost reduction initiatives

-

(216)

Investment income

3,090

1,573

Unrealized loss on investments

(2,105)

(193)

Foreign currency loss

(454)

(245)

Interest expense, net

(432)

(583)

Stock-based compensation expense

(2,395)

(3,064)

Change in fair value of contingent consideration

(15)

5,178

Income taxes

(108)

(234)

Loss from continuing operations

$

(9,432)

$

(6,738)

(1) Life Sciences Services segment includes immaterial revenue from external customers and cost of revenue associated with Life Sciences Products revenue and Life Sciences Products cost of products revenue, respectively.

(2) Cost of revenue is exclusive of employee related expenses of $7.5 million and $6.9 million, depreciation and amortization of $2.2 million and $2.0 million, stock-based compensation of $0.4 million and $0.6 million, and rent of $0.6 million and $0.8 million for the three months ended March 31, 2026 and 2025, respectively.

(3) Engineering and development expense is exclusive of employee related expenses of $2.9 million and $2.3 million, stock-based compensation of $0.2 million and $0.2 million, and depreciation and amortization of $0.1 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively.

(4) Other segment items primarily includes professional services, facility allocations, dues and subscriptions, audit fees, insurance, legal fees, and travel expense.