Cryo-Cell International, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)

Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)

9 Months Ended

Aug. 31, 2019

The following table provides information about disaggregated revenue by products and services:


	Three months ended
	August 31, 2019		August 31, 2018
Processing and storage fees	$	7,606,624	$	7,237,053
Public banking revenue		160,561		65,575
Licensee and royalty income		423,173		539,286
Product revenue		33,035		29,308

	$	8,223,393	$	7,871,222


	Nine months ended
	August 31, 2019		August 31, 2018
Processing and storage fees	$	22,621,520	$	19,732,575
Public banking revenue		529,041		65,575
Licensee and royalty income		625,001		742,445
Product revenue		70,795		84,208

	$	23,846,357	$	20,624,803

Schedule of Assets and Liabilities From Contracts With Customers

The following table provides information about assets and liabilities from contracts with customers:


	August 31, 2019		At Adoption
Contract assets (sales commissions)	$	383,399	$	329,231
Accounts receivables	$	5,888,156	$	5,867,335
Short-term contract liabilities (deferred revenue)	$	8,781,229	$	8,365,284
Long-term contract liabilities (deferred revenue)	$	22,893,086	$	20,317,231

The Company, in general, requires the customer to pay for processing and storage services at the time of processing. Contract assets include deferred contract acquisition costs, which will be amortized along with the associated revenue. Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. Accounts receivable consists of amounts due from clients that have enrolled and processed in the umbilical cord blood stem cell processing and storage programs related to renewals of annual plans and amounts due from license affiliates, and sublicensee territories. The Company did not have asset impairment charges related to contract assets in the three and nine months ended August 31, 2019.

The following table presents changes in the Company’s contract assets and liabilities during the nine months ended August 31, 2019:


	Balance at December 1, 2018		Additions		Deductions			Balance at August 31, 2019
Contract assets (sales commissions)	$	329,231	$	67,668	($	13,500	)	$	383,399
Accounts receivables	$	5,867,335	$	27,615,196	($	27,594,375	)	$	5,888,156
Contract liabilities (deferred revenue)	$	28,682,515	$	14,184,601	($	11,192,801	)	$	31,674,315

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of August 31, 2019 and November 30, 2018, respectively, segregated among the appropriate levels within the fair value hierarchy:


	Fair Value at			Fair Value Measurements at August 31, 2019 Using
Description	August 31, 2019			Level 1		Level 2		Level 3
Assets:
Marketable securities	$	874,691		$	874,691		—		—

Total	$	874,691		$	874,691		—		—

Liabilities:
Contingent consideration	$	3,601,697		$	—		—	$	3,601,697

Total	$	3,601,697		$	—		—	$	3,601,697

Contingent Consideration:
Beginning Balance as of November 30, 2018	$	4,282,975
Subtractions – Cord:Use earnout		(45,000	)
Fair value adjustment as of August 31, 2019		(636,278	)

Ending balance as of August 31, 2019	$	3,601,697


	Fair Value at			Fair Value Measurements at November 30, 2018 Using
Description	November 30, 2018			Level 1		Level 2		Level 3
Assets:
Trading securities	$	68,816		$	68,816		—		—
Available-for-sale securities		806,873			806,873		—		—

Total	$	875,689		$	875,689		—		—

Liabilities
Contingent consideration	$	4,282,975		$	—		—	$	4,282,975

Total	$	4,282,975		$	—		—	$	4,282,975