0000862692false--11-30Q2July 31 2021June 30, 2022one year0000862692ccel:ServiceBasedStockOptionsMemberccel:TwoThousandTwentyTwoEquityIncentivePlanMember2022-12-012023-05-310000862692ccel:ServiceBasedVestingConditionOptionsMember2023-03-012023-05-310000862692srt:MaximumMember2022-12-012023-05-310000862692ccel:TwoThousandTwelvePlanMember2023-05-310000862692us-gaap:AdditionalPaidInCapitalMember2022-05-310000862692ccel:TermLoanMember2023-03-012023-05-310000862692srt:MaximumMemberus-gaap:PatentsMember2022-12-012023-05-310000862692ccel:TermLoanMemberccel:TexasCapitalBankNationalAssociationMemberccel:SeniorCreditFacilityMember2022-12-012023-05-310000862692ccel:FivePercentUponExecutionMemberccel:DukeUniversityMemberccel:FullyDilutedEquityOwnershipMember2021-02-232021-02-230000862692us-gaap:RetainedEarningsMember2021-12-012022-05-310000862692us-gaap:OperatingSegmentsMemberccel:PrepacytecbMember2022-03-012022-05-310000862692ccel:UmbilicalCordBloodAndCordTissueStemCellServiceMember2022-11-300000862692us-gaap:StockOptionMemberccel:EmploymentAgreementsMemberccel:MarketBasedVestingConditionOptionsMember2022-12-232022-12-230000862692ccel:ProcessingAndStorageFeesMember2023-03-012023-05-310000862692us-gaap:CommonStockMember2023-05-310000862692us-gaap:TreasuryStockMember2022-12-012023-05-310000862692ccel:DukeUniversityMemberccel:SecondAnniversaryMember2021-02-230000862692ccel:TermLoanMember2023-05-310000862692ccel:UmbilicalCordBloodAndCordTissueStemCellServiceMember2023-03-012023-05-310000862692ccel:BrandMember2023-05-310000862692srt:MinimumMemberccel:DukeUniversityMember2021-02-230000862692us-gaap:SellingGeneralAndAdministrativeExpensesMemberccel:PerformanceAndMarketBasedVestingConditionOptionsMember2023-05-310000862692us-gaap:PatentsMember2023-05-310000862692ccel:CustomerRelationshipsOneMember2023-05-310000862692us-gaap:FairValueMeasurementsRecurringMember2022-11-300000862692us-gaap:AdditionalPaidInCapitalMember2022-12-012023-05-310000862692us-gaap:OperatingSegmentsMember2022-12-012023-05-310000862692us-gaap:AccountsReceivableMember2022-12-012023-05-310000862692us-gaap:AdditionalPaidInCapitalMember2022-03-012022-05-310000862692ccel:OptionTwoMember2023-05-310000862692us-gaap:SellingGeneralAndAdministrativeExpensesMemberccel:EmploymentAgreementsMemberccel:PerformanceAndMarketBasedVestingConditionOptionsMember2023-05-3100008626922015-04-080000862692ccel:FourteenDaysOfFebruaryDateTwoThreeYearTwoZeroTwoOneMemberccel:DukeUniversityMember2021-02-230000862692ccel:MarketBasedStockOptionsMemberccel:TwoThousandTwelvePlanMember2022-12-012023-05-310000862692us-gaap:RetainedEarningsMember2022-11-300000862692ccel:AmendedAndRestatedPromissoryNotesMemberccel:SusserBankCreditAgreementMember2021-12-012022-05-310000862692ccel:TermLoanMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-07-182022-07-180000862692us-gaap:RetainedEarningsMember2022-12-012023-05-310000862692ccel:TwoThousandSixPlanMemberus-gaap:EmployeeStockOptionMember2022-11-300000862692ccel:ServiceBasedVestingConditionOptionsMember2022-12-012023-05-310000862692us-gaap:RevolvingCreditFacilityMemberccel:SusserBankCreditAgreementMember2022-07-180000862692us-gaap:FairValueInputsLevel2Member2023-05-310000862692us-gaap:StockOptionMemberccel:MarketBasedVestingConditionOptionsMember2022-04-082022-04-080000862692us-gaap:SeriesAPreferredStockMember2022-11-300000862692us-gaap:SeriesAPreferredStockMember2023-05-310000862692ccel:DukeUniversityMember2021-12-012022-05-310000862692ccel:ServiceBasedVestingConditionOptionsMember2023-05-310000862692us-gaap:LicensingAgreementsMember2022-11-300000862692ccel:EmploymentAgreementsMemberccel:MarketBasedVestingConditionOptionsMember2022-12-232022-12-230000862692us-gaap:ProductMember2022-12-012023-05-3100008626922022-02-280000862692ccel:ServiceBasedStockOptionsMemberccel:TwoThousandTwentyTwoEquityIncentivePlanMember2021-12-012022-11-300000862692us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-05-310000862692ccel:DukeUniversityMember2022-12-012023-05-310000862692ccel:TwoThousandTwelvePlanMemberccel:PerformanceBasedStockOptionsMember2021-12-012022-11-300000862692us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2023-05-3100008626922023-03-012023-05-310000862692us-gaap:TreasuryStockMember2023-02-280000862692ccel:UmbilicalCordBloodAndCordTissueStemCellServiceMember2023-05-310000862692ccel:PrepacytecbMember2023-03-012023-05-310000862692ccel:PrepacytecbMember2023-05-310000862692ccel:TwoThousandTwelvePlanMemberccel:ServiceBasedRestrictedSharesMember2022-12-012023-05-310000862692ccel:ThirdAnniversaryMemberccel:DukeUniversityMember2022-02-040000862692ccel:PublicCordBloodBankingMember2022-11-300000862692ccel:ProcessingAndStorageFeesMember2021-12-012022-05-310000862692us-gaap:TreasuryStockMember2022-05-310000862692ccel:TwoThousandTwentyTwoEquityIncentivePlanMemberccel:MarketBasedStockOptionsMember2021-12-012022-05-310000862692ccel:PublicCordBloodBankingMember2023-05-310000862692ccel:ServiceBasedStockOptionsMemberccel:TwoThousandTwelvePlanMember2021-12-012022-11-300000862692us-gaap:RetainedEarningsMember2023-02-280000862692ccel:AmendedAndRestatedPromissoryNotesMemberccel:SusserBankCreditAgreementMember2022-12-012023-05-310000862692ccel:OptionOneMember2022-05-310000862692ccel:PrepacytecbMember2022-12-012023-05-310000862692us-gaap:OperatingSegmentsMember2021-12-012022-05-310000862692ccel:ServiceBasedVestingConditionOptionsMember2022-11-300000862692ccel:TermLoanMemberccel:TexasCapitalBankNationalAssociationMemberccel:AmendedSeniorCreditFacilityMemberccel:AmendedAndRestatedPromissoryNotesMember2016-08-260000862692us-gaap:FairValueInputsLevel3Memberccel:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-012023-05-310000862692us-gaap:FairValueMeasurementsRecurringMember2023-05-310000862692ccel:RangeTwoMember2023-05-310000862692us-gaap:RevolvingCreditFacilityMembersrt:MaximumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-07-182022-07-180000862692ccel:TwoThousandTwelvePlanMemberus-gaap:EmployeeStockOptionMember2012-08-012012-08-310000862692us-gaap:OperatingSegmentsMemberccel:UmbilicalCordBloodAndCordTissueStemCellServiceMember2021-12-012022-05-310000862692us-gaap:RetainedEarningsMember2021-11-300000862692ccel:DukeUniversityMemberccel:LicensedProductAndLicensedProcessMember2023-05-310000862692ccel:DukeUniversityMember2022-02-042022-02-040000862692us-gaap:OperatingSegmentsMemberccel:PrepacytecbMember2022-12-012023-05-310000862692us-gaap:TreasuryStockMember2023-03-012023-05-310000862692ccel:SusserMember2023-05-310000862692ccel:RangeSevenMember2022-12-012023-05-310000862692ccel:RangeSixMember2023-05-310000862692ccel:PublicBankingMember2023-03-012023-05-3100008626922022-12-012023-05-310000862692ccel:RangeFiveMember2023-05-310000862692us-gaap:CustomerRelationshipsMember2022-11-3000008626922012-06-060000862692us-gaap:CommonStockMember2022-05-310000862692ccel:TwoThousandSixPlanMemberus-gaap:EmployeeStockOptionMember2023-05-310000862692us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-05-310000862692ccel:SusserMember2023-03-012023-05-310000862692ccel:TermLoanMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-07-182022-07-180000862692us-gaap:LondonInterbankOfferedRateLIBORMemberccel:TermLoanMemberccel:TexasCapitalBankNationalAssociationMemberccel:SeniorCreditFacilityMember2016-05-200000862692us-gaap:SellingGeneralAndAdministrativeExpensesMemberccel:MarketBasedVestingConditionOptionsMember2021-12-012022-05-310000862692ccel:CustomerRelationshipsOneMember2022-12-012023-05-310000862692ccel:TwoPointFivePercentUponCumulativeNetSalesMemberccel:DukeUniversityMemberccel:LicensedProductAndLicensedProcessMemberccel:FullyDilutedEquityOwnershipMember2021-02-232021-02-230000862692srt:MaximumMemberccel:DukeUniversityMemberccel:UmbilicalCordBloodAndCordTissueStemCellServiceAndPrepacytecbMember2022-12-012023-05-310000862692ccel:PublicBankingMember2022-03-012022-05-310000862692us-gaap:FairValueInputsLevel3Memberccel:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2022-11-300000862692us-gaap:TreasuryStockMember2023-05-310000862692ccel:TianheStemCellBiotechnologiesIncMember2022-11-300000862692ccel:TianheStemCellBiotechnologiesIncMember2023-05-3100008626922012-02-012012-02-010000862692ccel:ServiceBasedVestingConditionOptionsMemberus-gaap:StockOptionMember2021-12-012022-05-310000862692ccel:AllOtherMember2023-05-310000862692ccel:ServiceBasedVestingConditionOptionsMember2021-12-012022-05-310000862692ccel:DukeUniversityMember2023-02-230000862692us-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-07-182022-07-180000862692ccel:TermLoanMemberccel:SusserBankCreditAgreementMember2022-07-180000862692ccel:AmendedAndRestatedPromissoryNotesMemberccel:SusserBankCreditAgreementMember2022-03-012022-05-310000862692us-gaap:CommonStockMember2022-11-3000008626922022-11-300000862692ccel:PublicBankingMember2022-12-012023-05-3100008626922017-06-012017-06-010000862692us-gaap:OperatingSegmentsMember2022-03-012022-05-310000862692us-gaap:AdditionalPaidInCapitalMember2022-02-280000862692us-gaap:AdditionalPaidInCapitalMember2023-03-012023-05-3100008626922021-12-012022-05-310000862692us-gaap:OperatingSegmentsMemberccel:UmbilicalCordBloodAndCordTissueStemCellServiceMember2022-12-012023-05-310000862692ccel:MarketBasedVestingConditionOptionsMember2022-04-082022-04-080000862692ccel:PublicCordBloodBankingMember2023-03-012023-05-310000862692ccel:ServiceBasedVestingConditionOptionsMember2022-03-012022-05-310000862692us-gaap:RevolvingCreditFacilityMemberccel:SusserBankCreditAgreementMember2022-07-182022-07-180000862692ccel:PromissoryNotesMemberccel:TermLoanMemberccel:TexasCapitalBankNationalAssociationMemberccel:SeniorCreditFacilityMember2016-07-010000862692ccel:UmbilicalCordBloodAndCordTissueStemCellServiceMember2022-03-012022-05-310000862692ccel:TwoThousandTwentyTwoEquityIncentivePlanMemberccel:MarketBasedStockOptionsMember2021-12-012022-11-300000862692srt:MinimumMemberccel:DukeUniversityMemberccel:TwoPointFivePercentOfMarketCapTriggerOccursTwentyFourMonthsMemberccel:FullyDilutedEquityOwnershipMember2021-02-230000862692us-gaap:OperatingSegmentsMemberccel:PrepacytecbMember2023-03-012023-05-310000862692srt:MinimumMemberus-gaap:PatentsMember2022-12-012023-05-310000862692ccel:ResearchAgreementMember2023-02-172023-02-170000862692us-gaap:FairValueInputsLevel3Memberccel:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2023-05-310000862692ccel:TwoThousandTwentyTwoEquityIncentivePlanMember2023-05-310000862692ccel:TwoThousandTwelvePlanMember2011-12-010000862692ccel:TermLoanMember2022-12-012023-05-310000862692ccel:TwoThousandTwelvePlanMemberccel:ServiceBasedRestrictedSharesMember2021-12-012022-11-300000862692ccel:EmploymentAgreementsMember2022-12-232022-12-230000862692us-gaap:CustomerRelationshipsMember2022-12-012023-05-310000862692ccel:TermLoanMember2021-12-012022-05-310000862692ccel:ServiceBasedVestingConditionOptionsMemberus-gaap:StockOptionMember2022-12-012023-05-310000862692us-gaap:LondonInterbankOfferedRateLIBORMemberccel:TermLoanMemberccel:TexasCapitalBankNationalAssociationMemberccel:SeniorCreditFacilityMember2018-06-112018-06-110000862692ccel:PublicCordBloodBankingMember2022-03-012022-05-310000862692us-gaap:ProductMember2021-12-012022-05-310000862692us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-11-300000862692ccel:RangeSevenMember2023-05-310000862692us-gaap:RetainedEarningsMember2022-02-280000862692ccel:ServiceBasedVestingConditionOptionsMember2021-12-012022-11-300000862692us-gaap:OperatingSegmentsMemberccel:UmbilicalCordBloodAndCordTissueStemCellServiceMember2023-03-012023-05-3100008626922023-05-3100008626922023-07-140000862692us-gaap:SellingGeneralAndAdministrativeExpensesMemberccel:EmploymentAgreementsMemberccel:PerformanceAndMarketBasedVestingConditionOptionsMember2022-12-012023-05-310000862692ccel:PublicBankingMember2023-05-310000862692ccel:MarketBasedStockOptionsMemberccel:TwoThousandTwelvePlanMember2021-12-012022-11-300000862692ccel:RangeSixMember2022-12-012023-05-310000862692ccel:TexasCapitalBankNationalAssociationMember2022-03-012022-05-310000862692us-gaap:AdditionalPaidInCapitalMember2021-11-300000862692us-gaap:StockOptionMemberccel:MarketBasedVestingConditionOptionsMember2022-04-080000862692ccel:PrepacytecbMember2021-12-012022-05-310000862692ccel:DukeUniversityMember2021-02-280000862692us-gaap:SellingGeneralAndAdministrativeExpensesMemberccel:PerformanceAndMarketBasedVestingConditionOptionsMember2022-12-012023-05-310000862692us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-11-300000862692ccel:ProcessingAndStorageFeesMember2022-12-012023-05-310000862692ccel:CordUseCordBloodBankIncorporationMember2018-06-102018-06-110000862692us-gaap:StockOptionMemberccel:MarketBasedVestingConditionOptionsMemberccel:ChiefInformationOfficerMember2022-04-082022-04-080000862692us-gaap:AdditionalPaidInCapitalMember2022-11-300000862692ccel:RangeFiveMember2022-12-012023-05-310000862692ccel:DukeUniversityMember2020-12-010000862692ccel:RangeTwoMember2022-12-012023-05-310000862692ccel:PublicBankingMember2021-12-012022-05-310000862692us-gaap:RetainedEarningsMember2022-03-012022-05-310000862692us-gaap:CustomerRelationshipsMember2023-05-310000862692us-gaap:OperatingSegmentsMemberccel:PrepacytecbMember2021-12-012022-05-310000862692ccel:PrepacytecbMember2022-03-012022-05-310000862692ccel:EmploymentAgreementsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberccel:MarketBasedVestingConditionOptionsMember2021-12-012022-05-310000862692ccel:DukeUniversityMember2022-03-012022-05-310000862692us-gaap:CommonStockMember2022-02-280000862692us-gaap:TreasuryStockMember2022-11-300000862692us-gaap:StockOptionMemberccel:CoCeoTwoMemberccel:MarketBasedVestingConditionOptionsMember2022-04-082022-04-0800008626922023-03-012023-05-310000862692ccel:BrandMember2022-11-300000862692us-gaap:CommonStockMember2022-12-012023-05-310000862692ccel:DukeUniversityMemberccel:UmbilicalCordBloodAndCordTissueStemCellServiceAndPrepacytecbMember2022-12-012023-05-310000862692us-gaap:StockOptionMemberccel:EmploymentAgreementsMemberccel:MarketBasedVestingConditionOptionsMember2022-12-230000862692ccel:TwoThousandTwelvePlanMemberccel:PerformanceBasedStockOptionsMember2022-12-012023-05-310000862692us-gaap:PatentsMember2022-11-3000008626922011-12-310000862692us-gaap:OperatingSegmentsMemberccel:PublicCordBloodBankingMember2023-03-012023-05-3100008626922022-03-012022-05-310000862692ccel:SusserAmendmentToCreditAgreementMember2023-03-272023-03-270000862692ccel:OptionThreeMember2021-12-012022-05-3100008626922022-05-310000862692us-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-07-182022-07-180000862692srt:MaximumMemberccel:DukeUniversityMember2021-02-230000862692ccel:ProcessingAndStorageFeesMember2022-03-012022-05-310000862692us-gaap:CommonStockMember2011-12-012023-05-310000862692us-gaap:ProductMember2022-03-012022-05-310000862692us-gaap:LicensingAgreementsMember2022-12-012023-05-310000862692us-gaap:SellingGeneralAndAdministrativeExpensesMemberccel:EmploymentAgreementsMemberccel:MarketBasedVestingConditionOptionsMember2022-12-012023-05-310000862692ccel:TwoPointFivePercentUponCumulativeNetSalesOneMemberccel:DukeUniversityMemberccel:LicensedProductAndLicensedProcessMemberccel:FullyDilutedEquityOwnershipMember2021-02-232021-02-230000862692ccel:PublicBankingMember2022-11-300000862692us-gaap:TreasuryStockMember2021-12-012022-05-310000862692srt:MinimumMember2022-12-012023-05-3100008626922016-10-060000862692us-gaap:StockOptionMemberccel:CoCeoTwoMemberccel:EmploymentAgreementsMemberccel:MarketBasedVestingConditionOptionsMember2022-12-232022-12-230000862692us-gaap:OperatingSegmentsMemberccel:UmbilicalCordBloodAndCordTissueStemCellServiceMember2022-03-012022-05-310000862692us-gaap:AdditionalPaidInCapitalMember2023-02-280000862692ccel:DukeUniversityMemberccel:LicensedProductAndLicensedProcessMember2022-12-012023-05-310000862692us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-05-310000862692ccel:CustomerRelationshipsOneMember2022-11-300000862692ccel:TwoThousandTwentyTwoEquityIncentivePlanMember2022-04-080000862692ccel:RangeOneMember2022-12-012023-05-310000862692us-gaap:TreasuryStockMember2022-03-012022-05-310000862692us-gaap:LondonInterbankOfferedRateLIBORMemberccel:TermLoanMemberccel:TexasCapitalBankNationalAssociationMemberccel:SeniorCreditFacilityMember2016-05-202016-05-200000862692us-gaap:RevolvingCreditFacilityMember2022-12-012023-05-310000862692ccel:PrepacytecbMember2022-11-300000862692us-gaap:AdditionalPaidInCapitalMember2021-12-012022-05-310000862692ccel:AllOtherMember2022-11-300000862692ccel:DukeUniversityMember2023-05-310000862692ccel:CoCeoOneMemberus-gaap:StockOptionMemberccel:EmploymentAgreementsMemberccel:MarketBasedVestingConditionOptionsMember2022-12-232022-12-230000862692us-gaap:CommonStockMember2021-11-300000862692ccel:TwoPointFivePercentOfMarketCapMemberccel:DukeUniversityMemberccel:FullyDilutedEquityOwnershipMember2021-02-232021-02-230000862692ccel:SusserAmendmentToCreditAgreementMemberus-gaap:InterestRateSwapMember2023-03-270000862692ccel:TwoPointFivePercentOfMarketCapTriggerOccursEighteenMonthsMembersrt:MinimumMemberccel:DukeUniversityMemberccel:FullyDilutedEquityOwnershipMember2021-02-230000862692ccel:UmbilicalCordBloodAndCordTissueStemCellServiceMember2022-12-012023-05-310000862692us-gaap:OperatingSegmentsMemberccel:PublicCordBloodBankingMember2021-12-012022-05-310000862692ccel:TermLoanMember2022-03-012022-05-310000862692ccel:RangeOneMember2023-05-310000862692ccel:ServiceBasedVestingConditionOptionsMemberus-gaap:StockOptionMember2022-03-012022-05-310000862692ccel:BrandMember2022-12-012023-05-310000862692ccel:CoCeoOneMemberus-gaap:StockOptionMemberccel:MarketBasedVestingConditionOptionsMember2022-04-082022-04-080000862692ccel:SusserMember2022-12-012023-05-310000862692us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-11-300000862692ccel:ServiceBasedVestingConditionOptionsMemberus-gaap:StockOptionMember2023-03-012023-05-310000862692us-gaap:RetainedEarningsMember2023-03-012023-05-310000862692us-gaap:OperatingSegmentsMember2023-03-012023-05-310000862692us-gaap:TreasuryStockMember2021-11-3000008626922005-12-012005-12-310000862692ccel:PublicCordBloodBankingMember2021-12-012022-05-310000862692us-gaap:RevolvingCreditFacilityMember2022-07-180000862692ccel:RangeThreeMember2023-05-310000862692us-gaap:OperatingSegmentsMemberccel:PublicCordBloodBankingMember2022-03-012022-05-310000862692ccel:RangeThreeMember2022-12-012023-05-310000862692ccel:SusserMember2022-11-300000862692ccel:TexasCapitalBankNationalAssociationMember2021-12-012022-05-310000862692ccel:DukeUniversityMember2021-02-232021-02-230000862692us-gaap:SellingGeneralAndAdministrativeExpensesMemberccel:MarketBasedVestingConditionOptionsMember2022-12-012023-05-310000862692us-gaap:ProductMember2023-03-012023-05-310000862692us-gaap:AdditionalPaidInCapitalMember2023-05-3100008626922021-11-300000862692us-gaap:LicensingAgreementsMember2023-05-310000862692ccel:PublicCordBloodBankingMember2022-12-012023-05-310000862692us-gaap:RetainedEarningsMember2023-05-310000862692us-gaap:RetainedEarningsMember2022-05-310000862692ccel:ResearchAgreementMember2023-02-170000862692ccel:TermLoanMemberccel:TexasCapitalBankNationalAssociationMemberccel:SecondAmendedSeniorCreditFacilityMember2018-06-110000862692us-gaap:TreasuryStockMember2022-02-280000862692us-gaap:CommonStockMember2021-12-012022-05-310000862692us-gaap:CommonStockMember2023-02-280000862692ccel:ServiceBasedStockOptionsMemberccel:TwoThousandTwelvePlanMember2022-12-012023-05-310000862692ccel:TermLoanMemberccel:TexasCapitalBankNationalAssociationMemberccel:AmendedAndRestatedPromissoryNotesMember2018-06-110000862692ccel:AmendedAndRestatedPromissoryNotesMemberccel:SusserBankCreditAgreementMember2023-03-012023-05-310000862692ccel:RangeFourMember2022-12-012023-05-3100008626922023-02-280000862692ccel:SecondAmendmentToTheLicenseAgreementMember2023-02-170000862692ccel:DukeUniversityMember2023-03-012023-05-310000862692ccel:UmbilicalCordBloodAndCordTissueStemCellServiceMember2021-12-012022-05-310000862692us-gaap:OperatingSegmentsMemberccel:PublicCordBloodBankingMember2022-12-012023-05-310000862692ccel:RangeFourMember2023-05-31ccel:Segmentxbrli:pureccel:Patientsutr:sqftxbrli:sharesiso4217:USDxbrli:sharesccel:Unitiso4217:USD

 

 

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

 

FORM 10-Q

 

(Mark One)

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the quarterly period ended May 31, 2023

Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the transition period from to

Commission File Number 001-40767

 

CRYO-CELL INTERNATIONAL, INC.

(Exact name of Registrant as Specified in its Charter)

 

 

Delaware

 

22-3023093

(State or other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

 

700 Brooker Creek Blvd. Oldsmar, FL 34677

 

(Address of Principal Executive Offices) (Zip Code)

 

(813) 749-2100

 

 

(Issuer's phone number, including area code)

(Former name, former address and former fiscal year, if changed since last report).

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $0.01 par value

 

CCEL

 

NYSE American LLC

 

Check whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files. Yes ☒ No ☐ Not Applicable ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” “small reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of July 14, 2023, 8,288,414 shares of $0.01 par value common stock were outstanding.

 

 


 

CRYO-CELL INTERNATIONAL, INC. AND SUBSIDIARIES

 

TABLE OF CONTENTS

 

 

PAGE

PART I - FINANCIAL INFORMATION (UNAUDITED)

 

 

 

Item 1. Financial Statements

 

 

 

Consolidated Balance Sheets

3

 

 

Consolidated Statements of Income

4

 

 

Consolidated Statements of Cash Flows

5

 

 

Consolidated Statements of Stockholders’ (Deficit) Equity

6

 

 

Notes to Consolidated Financial Statements

7

 

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

28

 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

36

 

 

Item 4. Controls and Procedures

36

 

 

PART II - OTHER INFORMATION

38

 

 

Item 1. Legal Proceedings

38

 

 

Item 1A. Risk Factors

38

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

50

 

 

Item 3. Defaults Upon Senior Securities

50

 

 

Item 4. Mine Safety Disclosures

50

 

 

Item 5. Other Information

51

 

 

Item 6. Exhibits

52

 

 

SIGNATURES

53

 

 

 

2


 

CRYO-CELL INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

 

(Unaudited)

 

 

 

 

 

 

May 31,

 

 

November 30,

 

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,123,998

 

 

$

1,703,958

 

Marketable securities

 

 

568,181

 

 

 

17,620

 

Accounts receivable (net of allowance for

 

 

 

 

 

 

doubtful accounts of $3,633,617 and $3,528,119, respectively)

 

 

6,682,479

 

 

 

6,043,941

 

Prepaid expenses

 

 

650,466

 

 

 

566,557

 

Inventory, current portion

 

 

879,294

 

 

 

851,230

 

Other current assets

 

 

409,059

 

 

 

426,879

 

Total current assets

 

 

10,313,477

 

 

 

9,610,185

 

Property and Equipment-net

 

 

17,098,064

 

 

 

13,603,115

 

Other Assets

 

 

 

 

 

 

Investment - Tianhe stock

 

 

308,000

 

 

 

308,000

 

Duke license agreement

 

 

13,210,641

 

 

 

13,691,028

 

Intangible assets, net

 

 

1,415,121

 

 

 

1,463,312

 

Inventory, net of current portion

 

 

8,836,287

 

 

 

9,275,344

 

Goodwill

 

 

1,941,411

 

 

 

1,941,411

 

Deferred tax assets

 

 

13,742,399

 

 

 

13,742,399

 

Operating lease right-of-use asset

 

 

1,188,284

 

 

 

606,034

 

Deposits and other assets, net

 

 

704,024

 

 

 

647,226

 

Total other assets

 

 

41,346,167

 

 

 

41,674,754

 

Total assets

 

$

68,757,708

 

 

$

64,888,054

 

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

4,056,242

 

 

$

1,605,301

 

Accrued expenses

 

 

2,216,727

 

 

 

3,585,810

 

Note payable

 

 

158,456

 

 

 

150,527

 

Line of credit

 

 

1,772,728

 

 

 

2,272,728

 

Swap contract liability

 

 

223,974

 

 

 

 

Current portion of operating lease liability

 

 

224,729

 

 

 

297,691

 

Current portion of Duke license agreement liability

 

 

1,600,000

 

 

 

1,983,036

 

Deferred revenue

 

 

9,455,539

 

 

 

9,586,327

 

Total current liabilities

 

 

19,708,395

 

 

 

19,481,420

 

Other Liabilities

 

 

 

 

 

 

Deferred revenue, net of current portion

 

 

38,652,511

 

 

 

36,000,059

 

Contingent consideration

 

 

907,379

 

 

 

1,162,704

 

Note payable, net of current portion and debt issuance costs

 

 

8,505,682

 

 

 

8,579,875

 

Operating lease long-term liability

 

 

967,116

 

 

 

313,298

 

Long-term liability - revenue sharing agreements

 

 

875,000

 

 

 

875,000

 

Total other liabilities

 

 

49,907,688

 

 

 

46,930,936

 

Total liabilities

 

 

69,616,083

 

 

 

66,412,356

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

Stockholders' (Deficit) Equity

 

 

 

 

 

 

Preferred stock ($.01 par value, 500,000 authorized and none issued and outstanding)

 

 

 

 

 

 

Series A Junior participating preferred stock ($.01 par value, 20,000 authorized and none issued and outstanding)

 

 

 

 

 

 

Common stock ($.01 par value, 20,000,000 authorized; 14,848,001 issued and 8,287,169 outstanding as of May 31, 2023 and 14,848,001 issued and 8,500,511 outstanding as of November 30, 2022)

 

 

148,480

 

 

 

148,480

 

Additional paid-in capital

 

 

43,066,971

 

 

 

42,597,380

 

Treasury stock, at cost

 

 

(23,424,101

)

 

 

(22,632,649

)

Accumulated (deficit) equity

 

 

(20,649,725

)

 

 

(21,637,513

)

Total stockholders' (deficit) equity

 

 

(858,375

)

 

 

(1,524,302

)

Total liabilities and stockholders' (deficit) equity

 

$

68,757,708

 

 

$

64,888,054

 

 

The accompanying notes are an integral part of these consolidated financial statements.

3


 

CRYO-CELL INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

 

May 31,

 

 

May 31,

 

 

May 31,

 

 

May 31,

 

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Processing and storage fees

 

 

$

7,581,697

 

 

$

7,480,082

 

 

$

15,143,215

 

 

$

14,637,568

 

Public banking revenue

 

 

 

163,816

 

 

 

116,735

 

 

 

394,513

 

 

 

199,580

 

Product revenue

 

 

 

27,177

 

 

 

36,400

 

 

 

59,377

 

 

 

54,600

 

Total revenue

 

 

 

7,772,690

 

 

 

7,633,217

 

 

 

15,597,105

 

 

 

14,891,748

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

2,143,186

 

 

 

2,201,540

 

 

 

4,210,550

 

 

 

4,304,742

 

Selling, general and administrative expenses

 

 

 

4,038,968

 

 

 

3,912,586

 

 

 

7,917,871

 

 

 

7,288,540

 

Change in fair value of contingent consideration

 

 

 

(23,124

)

 

 

(36,105

)

 

 

(187,825

)

 

 

(152,538

)

Research, development and related engineering

 

 

 

304,682

 

 

 

80,896

 

 

 

383,516

 

 

 

228,116

 

Depreciation and amortization

 

 

 

281,080

 

 

 

279,926

 

 

 

561,924

 

 

 

558,092

 

Total costs and expenses

 

 

 

6,744,792

 

 

 

6,438,843

 

 

 

12,886,036

 

 

 

12,226,952

 

Operating Income

 

 

 

1,027,898

 

 

 

1,194,374

 

 

 

2,711,069

 

 

 

2,664,796

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) on marketable securities

 

 

 

10,377

 

 

 

(18,188

)

 

 

6,696

 

 

 

(26,830

)

Loss on interest rate swap

 

 

 

(223,974

)

 

 

 

 

 

(223,974

)

 

 

 

Other income

 

 

 

2,066

 

 

 

118

 

 

 

3,334

 

 

 

127

 

Interest expense

 

 

 

(469,952

)

 

 

(276,524

)

 

 

(936,183

)

 

 

(582,619

)

Total other income (expense)

 

 

 

(681,483

)

 

 

(294,594

)

 

 

(1,150,127

)

 

 

(609,322

)

Income before income tax expense

 

 

 

346,415

 

 

 

899,780

 

 

 

1,560,942

 

 

 

2,055,474

 

Income tax expense

 

 

 

(125,439

)

 

 

(265,061

)

 

 

(573,154

)

 

 

(588,708

)

Net Income

 

 

$

220,976

 

 

$

634,719

 

 

$

987,788

 

 

$

1,466,766

 

Net income per common share - basic

 

 

$

0.03

 

 

$

0.08

 

 

$

0.12

 

 

$

0.17

 

Weighted average common shares outstanding - basic

 

 

 

8,325,101

 

 

 

8,437,544

 

 

 

8,395,307

 

 

 

8,479,071

 

Net income per common share - diluted

 

 

$

0.03

 

 

$

0.07

 

 

$

0.12

 

 

$

0.17

 

Weighted average common shares outstanding - diluted

 

 

 

8,331,911

 

 

 

8,553,085

 

 

 

8,402,538

 

 

 

8,643,106

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.

4


 

CRYO-CELL INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

For the Six Months Ended

 

 

 

May 31,

 

 

May 31,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

987,788

 

 

$

1,466,766

 

Adjustments to reconcile net income to net cash provided by
   operating activities:

 

 

 

 

 

 

Depreciation and amortization expense

 

 

724,890

 

 

 

760,759

 

Change in fair value of contingent consideration

 

 

(187,825

)

 

 

(152,538

)

Unrealized (gains) losses on marketable securities

 

 

(6,696

)

 

 

26,830

 

Unrealized loss on interest rate swap contract

 

 

223,974

 

 

 

 

Compensatory element of stock options

 

 

469,591

 

 

 

149,358

 

Provision for doubtful accounts

 

 

403,040

 

 

 

399,953

 

Amortization of debt issuance costs

 

 

10,862

 

 

 

9,777

 

Amortization of operating lease right-of-use asset

 

 

155,617

 

 

 

153,876

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(1,041,578

)

 

 

(296,934

)

Prepaid expenses

 

 

(83,909

)

 

 

(11,217

)

Inventory

 

 

410,993

 

 

 

190,803

 

Other current assets

 

 

17,820

 

 

 

(133,566

)

Deposits and other assets, net

 

 

(56,798

)

 

 

(237,521

)

Accounts payable

 

 

609,687

 

 

 

232,778

 

Accrued expenses

 

 

(1,369,083

)

 

 

(982,399

)

Operating lease liability

 

 

(157,011

)

 

 

(154,035

)

Deferred revenue

 

 

2,521,664

 

 

 

2,031,279

 

Net cash from operating activities

 

 

3,633,026

 

 

 

3,453,969

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,833,043

)

 

 

(954,607

)

Payment of Duke license agreement

 

 

(400,000

)

 

 

(5,000,000

)

Proceeds from liquidation of marketable securities

 

 

179,306

 

 

 

 

Purchases of marketable securities

 

 

(1,082,923

)

 

 

(1,142,212

)

Sale of marketable securities

 

 

359,752

 

 

 

1,127,669

 

Net cash used in investing activities

 

 

(2,776,908

)

 

 

(5,969,150

)

Cash flows from financing activities:

 

 

 

 

 

 

Treasury stock purchases

 

 

(791,452

)

 

 

(1,425,455

)

Repayments of note payable

 

 

(77,126

)

 

 

(1,550,000

)

Repayment of line of credit

 

 

(500,000

)

 

 

 

Proceeds from the exercise of stock options

 

 

 

 

 

32,000

 

Payment of Cord:Use earnout

 

 

(67,500

)

 

 

 

Net cash used in financing activities

 

 

(1,436,078

)

 

 

(2,943,455

)

Decrease in cash and cash equivalents

 

 

(579,960

)

 

 

(5,458,636

)

Cash and cash equivalents - beginning of period

 

 

1,703,958

 

 

 

8,263,088

 

Cash and cash equivalents - end of period

 

$

1,123,998

 

 

$

2,804,452

 

 

 

 

 

 

 

 

Supplemental non-cash operating activities:

 

 

 

 

 

 

Lease liability arising from right-of-use asset

 

$

737,867

 

 

$

 

Supplemental investing activities:

 

 

 

 

 

 

Construction costs payable

 

$

1,841,254

 

 

$

 

Supplemental cash flow information:

 

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

 

Interest

 

$

869,076

 

 

$

483,641

 

Income taxes

 

$

983,647

 

 

$

756,133

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.

5


 

CRYO-CELL INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY

(Unaudited)

 

 

 

 

For the Three Months Ended May 31, 2023

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Treasury

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

(Deficit) Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at February 28, 2023

 

 

14,848,001

 

 

$

148,480

 

 

$

42,910,554

 

 

$

(22,875,850

)

 

$

(20,870,701

)

 

$

(687,517

)

Compensatory element of stock options

 

 

 

 

 

 

 

 

156,417

 

 

 

 

 

 

 

 

 

156,417

 

Treasury stock

 

 

 

 

 

 

 

 

 

 

 

(548,251

)

 

 

 

 

 

(548,251

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

220,976

 

 

 

220,976

 

Balance at May 31, 2023

 

 

14,848,001

 

 

$

148,480

 

 

$

43,066,971

 

 

$

(23,424,101

)

 

$

(20,649,725

)

 

$

(858,375

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended May 31, 2023

 

 

 

 

 

 

 

 

 

Additional