It is considered part of the ascomycete group because its spores are released from a sac called an ascus. It is found on a variety of substrates containing cellulose including paper and plant compost. It can be readily found on the damp or water damaged paper in sheetrock. Several species have been reported to play a major role in decomposition of cellulose made materials. These fungi are able to dissolve the cellulose fibers in cotton and paper, and thus cause these materials to disintegrate. The process is especially rapid under moist conditions.