Annual report pursuant to Section 13 and 15(d)

Description of Business and Summary of Significant Accounting Policies (Tables)

v3.24.0.1
Description of Business and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Nov. 30, 2023
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, 2023

 

 

November 30, 2022

 

Contract assets (sales commissions)

 

$

695,695

 

 

$

615,628

 

Accounts receivable

 

$

6,576,240

 

 

$

6,043,941

 

Short-term contract liabilities (deferred revenue)

 

$

9,704,553

 

 

$

9,586,327

 

Long-term contract liabilities (deferred revenue)

 

$

41,186,800

 

 

$

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 twelve months ended November 30, 2023 and November 30, 2022.

The following table presents changes in the Company’s contract assets and liabilities during the twelve months ended November 30, 2023:

 

 

 

Balance at
December 1,
2022

 

 

Additions

 

 

Deductions

 

 

Balance at
November 30,
2023

 

Contract assets (sales commissions)

 

$

615,628

 

 

$

114,139

 

 

$

(34,072

)

 

$

695,695

 

Accounts receivable

 

$

6,043,941

 

 

$

34,592,477

 

 

$

(34,060,178

)

 

$

6,576,240

 

Contract liabilities (deferred revenue)

 

$

45,586,386

 

 

$

24,738,156

 

 

$

(19,433,189

)

 

$

50,891,353

 

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 receivable

 

$

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

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

 

 

 

Fair Value at

 

 

Fair Value Measurements at November 30, 2023 Using

 

Description

 

November 30,
2023

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

$

574,183

 

 

$

574,183

 

 

$

—

 

 

$

—

 

Interest rate swap

 

$

122,113

 

 

$

—

 

 

$

122,113

 

 

$

—

 

Total

 

$

696,296

 

 

$

574,183

 

 

$

122,113

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

44,226

 

 

$

—

 

 

$

—

 

 

$

44,226

 

Total

 

$

44,226

 

 

$

—

 

 

$

—

 

 

$

44,226

 

 

Contingent Consideration:

 

 

 

Beginning Balance as of November 30, 2022

 

$

1,162,704

 

Subtractions – Cord:Use earnout payment

 

 

(67,500

)

Fair value adjustment as of November 30, 2023

 

 

(1,050,978

)

Ending balance as of November 30, 2023

 

$

44,226

 

 

 

 

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

 
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:

 

 

 

 

Twelve Months Ended

 

 

 

 

November 30, 2023

 

 

November 30, 2022

 

Numerator:

 

 

 

 

 

 

 

Net (loss) income

 

 

$

(9,521,669

)

 

$

2,771,408

 

Denominator:

 

 

 

 

 

 

 

Weighted-average shares outstanding-basic

 

 

 

8,340,839

 

 

 

8,465,568

 

Dilutive common shares issuable upon exercise of
   stock options

 

 

 

—

 

 

 

18,426

 

Weighted-average shares-diluted

 

 

 

8,340,839

 

 

 

8,483,994

 

Income per share:

 

 

 

 

 

 

 

Basic

 

 

$

(1.14

)

 

$

0.33

 

Diluted

 

 

$

(1.14

)

 

$

0.33