Annual report pursuant to Section 13 and 15(d)

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

v3.22.4
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)
 12 Months Ended
Nov. 30, 2022
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:

 

 

 

November 30, 2022

 

 

November 30, 2021

 

Contract assets (sales commissions)

 

$

615,628

 

 

$

535,522

 

Accounts receivables

 

$

6,043,941

 

 

$

5,253,173

 

Short-term contract liabilities (deferred revenue)

 

$

9,586,327

 

 

$

9,358,696

 

Long-term contract liabilities (deferred revenue)

 

$

36,000,059

 

 

$

31,274,214

 

 

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, 2022 and November 30, 2021.

The following table presents changes in the Company’s contract assets and liabilities during the twelve months ended November 30, 2022:

 

 

 

Balance at
December 1,
2021

 

 

Additions

 

 

Deductions

 

 

Balance at
November 30,
2022

 

Contract assets (sales commissions)

 

$

535,522

 

 

$

109,673

 

 

$

(29,567

)

 

$

615,628

 

Accounts receivables

 

$

5,253,173

 

 

$

38,342,307

 

 

$

(37,551,539

)

 

$

6,043,941

 

Contract liabilities (deferred revenue)

 

$

40,632,910

 

 

$

25,069,323

 

 

$

(20,115,847

)

 

$

45,586,386

 

The following table presents changes in the Company’s contract assets and liabilities during the twelve months ended November 30, 2021:

 

 

 

Balance at
December 1,
2020

 

 

Additions

 

 

Deductions

 

 

Balance at
November 30,
2021

 

Contract assets (sales commissions)

 

$

466,141

 

 

$

95,168

 

 

$

(25,787

)

 

$

535,522

 

Accounts receivables

 

$

6,322,960

 

 

$

36,814,240

 

 

$

(37,884,027

)

 

$

5,253,173

 

Contract liabilities (deferred revenue)

 

$

36,384,360

 

 

$

17,685,646

 

 

$

(13,437,096

)

 

$

40,632,910

 
Estimated Useful Lives of Property and Equipment Estimated useful lives of property and equipment are as follows:

 

Building

 

39 years

Vehicle

 

5 years

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, 2022 and November 30, 2021, respectively, segregated among the appropriate levels within the fair value hierarchy:

 

 

 

Fair Value at

 

 

Fair Value Measurements at November 30, 2022 Using

 

Description

 

November 30,
2022

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

$

17,620

 

 

$

17,620

 

 

$

—

 

 

$

—

 

Total

 

$

17,620

 

 

$

17,620

 

 

$

—

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

1,162,704

 

 

$

—

 

 

$

—

 

 

$

1,162,704

 

Total

 

$

1,162,704

 

 

$

—

 

 

$

—

 

 

$

1,162,704

 

 

Contingent Consideration:

 

 

 

Beginning Balance as of November 30, 2021

 

$

727,371

 

Subtractions – Cord:Use earnout payment

 

 

—

 

Fair value adjustment as of November 30, 2022

 

 

435,333

 

Ending balance as of November 30, 2022

 

$

1,162,704

 

 

 

 

Fair Value at

 

 

Fair Value Measurements at November 30, 2021 Using

 

Description

 

November 30,
2021

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

$

75,412

 

 

$

75,412

 

 

$

-

 

 

$

-

 

Total

 

$

75,412

 

 

$

75,412

 

 

$

-

 

 

$

-

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

727,371

 

 

$

-

 

 

$

-

 

 

$

727,371

 

Total

 

$

727,371

 

 

$

-

 

 

$

-

 

 

$

727,371

 
Calculation of Basic and Diluted Net Income per Common Share The composition of basic and diluted net income per share is as follows:

 

 

 

November 30, 2022

 

 

November 30, 2021

 

Numerator:

 

 

 

 

 

 

Net income

 

$

2,771,408

 

 

$

2,083,521

 

Denominator:

 

 

 

 

 

 

Weighted-average shares outstanding-basic

 

 

8,465,568

 

 

 

8,137,342

 

Dilutive common shares issuable upon exercise of
   stock options

 

 

18,426

 

 

 

224,378

 

Weighted-average shares-diluted

 

 

8,483,994

 

 

 

8,361,720

 

Income per share:

 

 

 

 

 

 

Basic

 

$

0.33

 

 

$

0.26

 

Diluted

 

$

0.33

 

 

$

0.25