Annual report pursuant to Section 13 and 15(d)

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

v3.19.3.a.u2
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)
12 Months Ended
Nov. 30, 2019
Accounting Policies [Abstract]  
Disaggregation of Revenue
The following table provides information about disaggregated revenue by products and services:
 
     Twelve months ended  
     November 30, 2019      November 30, 2018  
Processing and storage fees
   $ 29,991,972      $ 27,817,872  
Public banking revenue
     652,204        296,295  
Licensee and royalty income
     1,000,000        1,000,000  
Product revenue
     172,395        104,323  
  
 
 
    
 
 
 
   $ 31,816,571      $ 29,218,490  
  
 
 
    
 
 
 
Schedule of Assets and Liabilities From Contracts With Customers
The following table provides information about assets and liabilities from contracts with customers:
 
     November 30, 2019      At Adoption  
Contract assets (sales commissions)
   $ 398,535      $ 329,231  
Accounts receivables
   $ 6,097,331      $ 5,867,335  
Short-term contract liabilities (deferred revenue)
   $ 8,875,138      $ 8,365,284  
Long-term contract liabilities (deferred revenue)
   $ 23,633,373      $ 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 twelve
months
ended November 30, 2019.
The following table presents changes in the Company’s contract assets and liabilities during the twelve months ended November 30, 2019:
 
     Balance at
December 1, 2018
     Additions      Deductions      Balance at
November 30,
 
2019
 
Contract assets (sales commissions)
   $ 329,231      $ 88,569      ($ 19,265    $ 398,535  
Accounts receivables
   $ 5,867,335      $ 36,579,504      ($ 36,349,508    $ 6,097,331  
Contract liabilities (deferred revenue)
   $ 28,682,515      $ 18,759,963      ($ 14,933,967    $ 32,508,511  
Estimated Useful Lives of Property and Equipment Estimated useful lives of property and equipment are as follows:
Furniture and equipment   
3-10
years
 
 
 
Leasehold improvements    Lesser of
8-10
years or the lives of the leases
 
 
 
Computer software – internal use   
1-5
years
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 November 30, 2019 and November 30, 2018, respectively, segregated among the appropriate levels within the fair value hierarchy:
 
    
Fair Value at
     at November 30, 2019 Using  
Description
   November 30,
2019
     Level 1      Level 2      Level 3  
Assets:
           
Marketable securities
   $ 904,053      $ 904,053                
  
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 904,053      $ 904,053                
  
 
 
    
 
 
    
 
 
    
 
 
 
Liabilities:
           
Contingent consideration
   $ 3,495,057      $             $ 3,495,057  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 3,495,057      $             $ 3,495,057  
  
 
 
    
 
 
    
 
 
    
 
 
 
Contingent Consideration:
           
Beginning Balance as of November 30, 2018
   $ 4,282,975           
Subtractions – Cord:Use earnout payment
     (45,000         
Fair value adjustment as of November 30, 2019
     (742,918         
  
 
 
          
Ending balance as of November 30, 2019
   $ 3,495,057           
  
 
 
          
    
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  
  
 
 
    
 
 
    
 
 
    
 
 
 
Calculation of Basic and Diluted Net (loss) Income per Common Share The composition of basic and diluted net (loss) income per share is as follows:
     November 30, 2019      November 30, 2018  
Numerator:
     
Net income (loss)
   $ 2,290,774      ($ 854,824
Denominator:
     
Weighted-average shares outstanding-basic
     7,794,828        7,463,051  
Dilutive common shares issuable upon exercise of stock options
     617,586        —    
  
 
 
    
 
 
 
Weighted-average shares-diluted
     8,412,414        7,463,051  
  
 
 
    
 
 
 
Income(Loss) per share:
     
Basic
   $ 0.29      ($ 0.11
  
 
 
    
 
 
 
Diluted
   $ 0.27      ($ 0.11