Quarterly report pursuant to Section 13 or 15(d)

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

v3.20.2
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)
6 Months Ended
May 31, 2020
Accounting Policies [Abstract]  
Schedule of Assets and Liabilities From Contracts With Customers
The following table provides information about assets and liabilities from contracts with customers:
 
     May 31, 2020      At Adoption  
Deposits and other
assets
   $ 433,875      $ 329,231  
Accounts receivables
   $ 5,974,457      $ 5,867,335  
Short-term contract liabilities (deferred revenue)
   $ 8,839,718      $ 8,365,284  
Long-term contract liabilities (deferred revenue)
   $ 25,312,382      $ 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 six months ended May 31, 2020 and May 31, 2019.
The following table presents changes in the Company’s contract assets and liabilities during the six months ended May 31, 2020:
 
     Balance at
December 1, 2019
     Additions      Deductions      Balance at
May 31, 2020
 
Contract assets (
def
erred
sales commissions)
   $ 398,535      $ 45,801      $ (10,461    $ 433,875  
Accounts receivables
   $ 6,097,331      $ 17,585,653      $ (17,708,527    $ 5,974,457  
Contract liabilities (deferred revenue)
   $ 32,508,511      $ 8,703,442      $ (7,059,853    $ 34,152,100  
The following table presents changes in the Company’s contract assets and liabilities during the six months ended May 31, 2019:
 
     Balance at
December 1, 2018
     Additions      Deductions      Balance at
May 31, 2019
 
Contract assets (sales commissions)
   $ 329,231      $ 44,488      $ (8,633    $ 365,086  
Accounts receivables
   $ 5,867,335      $ 18,471,851      $ (18,580,513    $ 5,758,673  
Contract liabilities (deferred revenue)
   $ 28,682,515      $ 9,249,051      $ (7,430,956    $ 30,500,610  
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 May 31, 2020 and November 30, 2019, respectively, segregated among the appropriate levels within the fair value hierarchy:
 
          
Fair Value Measurements
 
    
Fair Value at
   
at May 31, 2020 Using
 
Description
  
May 31, 2020
   
Level 1
    
Level 2
    
Level 3
 
Assets:
           
Marketable securities
   $ 905,429      $ 905,429        —          —    
  
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 905,429      $ 905,429        —          —    
  
 
 
    
 
 
    
 
 
    
 
 
 
Liabilities:
     
Contingent consideration
   $ 3,471,068      $ —          —        $ 3,471,068  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 3,471,068      $ —          —        $ 3,471,068  
  
 
 
    
 
 
    
 
 
    
 
 
 
Contingent Consideration:
           
Beginning Balance as of November 30, 2019
   $ 3,495,057           
Subtractions – Cord:Use earnout
               
Fair value adjustment as of May 31, 2020
     (23,989         
  
 
 
          
Ending balance as of May 31, 2020
   $ 3,471,068           
  
 
 
          
 
           
Fair Value Measurements
 
    
Fair Value at
    
at November 30, 2019 Using
 
Description
  
November 30,

2019
    
Level 1
    
Level 2
    
Level 3
 
Assets:
           
Trading Securities
   $ 904,053      $ 904,053        —          —    
  
 
 
    
 
 
    
 
 
    
 
 
 
   $ 904,053      $ 904,053        —          —    
  
 
 
    
 
 
    
 
 
    
 
 
 
Liabilities:
           
Contingent consideration
   $ 3,495,057      $ —          —        $ 3,495,057  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 3,495,057      $ —          —        $ 3,495,057