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)
9 Months Ended
Aug. 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:

 

 

 

August 31,

2020

 

 

At

Adoption

 

Contract assets (sales commissions)

 

$

450,638

 

 

$

329,231

 

Accounts receivables

 

$

6,503,550

 

 

$

5,867,335

 

Short-term contract liabilities (deferred revenue)

 

$

9,107,027

 

 

$

8,365,284

 

Long-term contract liabilities (deferred revenue)

 

$

26,201,441

 

 

$

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 nine months ended August 31, 2020.

The following table presents changes in the Company’s contract assets and liabilities during the nine months ended August 31, 2020:

 

 

 

Balance at

December 1,

2019

 

 

Additions

 

 

Deductions

 

 

Balance at

August 31,

2020

 

Contract assets (sales commissions)

 

$

398,535

 

 

$

68,152

 

 

$

(16,049

)

 

$

450,638

 

Accounts receivables

 

$

6,097,331

 

 

$

28,361,238

 

 

$

(27,955,019

)

 

$

6,503,550

 

Contract liabilities (deferred revenue)

 

$

32,508,511

 

 

$

13,045,728

 

 

$

(10,245,771

)

 

$

35,308,468

 

 

The following table presents changes in the Company’s contract assets and liabilities during the nine months ended August 31, 2019:

 

 

 

Balance at

December 1,

2018

 

 

Additions

 

 

Deductions

 

 

Balance at

August 31,

2019

 

Contract assets (sales commissions)

 

$

329,231

 

 

$

67,668

 

 

$

(13,500

)

 

$

383,399

 

Accounts receivables

 

$

5,867,335

 

 

$

27,615,196

 

 

$

(27,594,375

)

 

$

5,888,156

 

Contract liabilities (deferred revenue)

 

$

28,682,515

 

 

$

14,184,601

 

 

$

(11,192,801

)

 

$

31,674,315

 

 

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 August 31, 2020 and November 30, 2019, respectively, segregated among the appropriate levels within the fair value hierarchy:

 

 

 

Fair Value at

 

 

Fair Value Measurements

 

 

 

August 31,

 

 

at August 31, 2020 Using

 

Description

 

2020

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

$

62,716

 

 

$

62,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

62,716

 

 

$

62,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

3,280,316

 

 

$

 

 

 

 

 

$

3,280,316

 

Total

 

$

3,280,316

 

 

$

 

 

 

 

 

$

3,280,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent Consideration:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance as of November 30, 2019

 

$

3,495,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtractions – Cord:Use earnout

 

 

(45,000

)

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment as of August 31, 2020

 

 

(169,741

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance as of August 31, 2020

 

$

3,280,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value at

 

 

Fair Value Measurements

 

 

 

November 30,

 

 

at November 30, 2019 Using

 

Description

 

2019

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading 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