Quarterly report pursuant to Section 13 or 15(d)

Inventory

v3.19.3
Inventory
 9 Months Ended
Aug. 31, 2019
Inventory Disclosure [Abstract]  
Inventory
Note 4 – Inventory
Inventory is comprised of public cord blood banking specimens, collection kits, finished goods,
work-in-process
and raw materials. Collection kits are used in the collection and processing of umbilical cord blood and cord tissue stem cells, finished goods include products purchased or assumed for resale and for the use in the Company’s processing and storage service. Inventory in the Public Cord Blood Bank includes finished goods that are specimens that are available for resale. The Company considers inventory in the Public Cord Blood Bank that has not completed all testing to determine viability to be work in process. The components of inventory at August 31, 2019 and November 30, 2018 are as follows:
 
    As of August 31, 2019     As of November 30, 2018  
Raw materials
   $ —       $ —    
Work-in-process
     130,217       188,085  
Work-in-process
– Public Bank
     —         —    
Finished goods
     23,811       5,262  
Finished goods – Public Bank
     13,492,398       15,831,081  
Collection kits
     39,137       19,163  
Inventory reserve
     (7,718 )      (7,718 ) 
   
 
 
    
 
 
  
Total inventory
   $ 13,677,845     $ 16,035,873  
   
 
 
    
 
 
  
Inventory, current portion
     1,031,845       1,260,557  
Inventory, long-term portion
     12,646,000       14,775,316  
Total inventory
   $ 13,677,845     $ 16,035,873  
   
 
 
    
 
 
  
During the second quarter of fiscal 2019, due to changes in sales trends and estimated recoverability of cost capitalized into inventory for the public banking inventory, the Company prepared an analysis and determined that the value of the public inventory should be reduced from cost to net realizable value and this led to an impairment charge to the public inventory of $2,332,763.
Due to the nature of the units of public inventory, the net realizable value of those units that are expected to be sold during the next twelve months are included in current inventory. The remaining balance of the public inventory is considered to be long-term. In order to conform to the current period presentation, the Company made certain reclassifications to the Public Bank inventory prior period balance in the Consolidated Balance Sheets. This reclassification had no effect on the previously reported total assets or liabilities, net income or cash flows from operating activities.