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)

6 Months Ended

May 31, 2023

Schedule of Assets and Liabilities From Contracts With Customers

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


	May 31, 2023		November 30, 2022
Contract assets (sales commissions)	$	654,116	$	615,628
Accounts receivable	$	6,682,479	$	6,043,941
Short-term contract liabilities (deferred revenue)	$	9,455,539	$	9,586,327
Long-term contract liabilities (deferred revenue)	$	38,652,511	$	36,000,059

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, 2023.

The following table presents changes in the Company’s contract assets and liabilities during the six months ended May 31, 2023:


	Balance at December 1, 2022		Additions		Deductions			Balance at May 31, 2023
Contract assets (sales commissions)	$	615,628	$	54,948	$	(16,460	)	$	654,116
Accounts receivable	$	6,043,941	$	21,299,426	$	(20,660,888	)	$	6,682,479
Contract liabilities (deferred revenue)	$	45,586,386	$	13,557,161	$	(11,035,497	)	$	48,108,050

The following table presents changes in the Company’s contract assets and liabilities during the six months ended May 31, 2022:


	Balance at December 1, 2021		Additions		Deductions			Balance at May 31, 2022
Contract assets (sales commissions)	$	535,522	$	51,759	$	(14,238	)	$	573,043
Accounts receivable	$	5,253,173	$	18,402,414	$	(18,505,433	)	$	5,150,154
Contract liabilities (deferred revenue)	$	40,632,910	$	11,840,456	$	(9,809,177	)	$	42,664,189

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, 2023 and November 30, 2022, respectively, segregated among the appropriate levels within the fair value hierarchy:


	Fair Value at		Fair Value Measurements at May 31, 2023 Using
Description	May 31, 2023		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	568,181	$	568,181	$	—	$	—
Total	$	568,181	$	568,181	$	—	$	—
Liabilities:
Contingent consideration	$	907,379	$	—	$	—	$	907,379
Interest rate swap		223,974		—		223,974		—
Total	$	1,131,353	$	—	$	223,974	$	907,379


Contingent Consideration:
Beginning Balance as of November 30, 2022	$	1,162,704
Subtractions – Cord:Use earnout payment		(67,500	)
Fair value adjustment as of May 31, 2023		(187,825	)
Ending balance as of May 31, 2023	$	907,379


	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
Interest rate swap		—		—		—		—
Total	$	1,162,704	$	—	$	—	$	1,162,704