Annual report pursuant to Section 13 and 15(d)

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

v3.19.3.a.u2
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)
 12 Months Ended
Nov. 30, 2019
Accounting Policies [Abstract]  
Disaggregation of Revenue
The following table provides information about disaggregated revenue by products and services:
 
     Twelve months ended  
     November 30, 2019      November 30, 2018  
Processing and storage fees
    $ 29,991,972      $ 27,817,872  
Public banking revenue
      652,204        296,295  
Licensee and royalty income
      1,000,000        1,000,000  
Product revenue
      172,395        104,323  
  
 
 
     
 
 
  
   $ 31,816,571      $ 29,218,490  
  
 
 
     
 
 
  
Schedule of Assets and Liabilities From Contracts With Customers
The following table provides information about assets and liabilities from contracts with customers:
 
     November 30, 2019      At Adoption  
Contract assets (sales commissions)
    $ 398,535      $ 329,231  
Accounts receivables
    $ 6,097,331      $ 5,867,335  
Short-term contract liabilities (deferred revenue)
    $ 8,875,138      $ 8,365,284  
Long-term contract liabilities (deferred revenue)
    $ 23,633,373      $ 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 twelve
months
ended November 30, 2019.
The following table presents changes in the Company’s contract assets and liabilities during the twelve months ended November 30, 2019:
 
     Balance at
December 1, 2018		      Additions      Deductions      Balance at
November 30,
 
2019		  
Contract assets (sales commissions)
    $ 329,231      $ 88,569      ($ 19,265 )     $ 398,535  
Accounts receivables
    $ 5,867,335      $ 36,579,504      ($ 36,349,508 )     $ 6,097,331  
Contract liabilities (deferred revenue)
    $ 28,682,515      $ 18,759,963      ($ 14,933,967 )     $ 32,508,511  
Estimated Useful Lives of Property and Equipment Estimated useful lives of property and equipment are as follows:
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, 2019 and November 30, 2018, respectively, segregated among the appropriate levels within the fair value hierarchy:
 
    
Fair Value at
      at November 30, 2019 Using  
Description
    November 30,
2019		      Level 1      Level 2      Level 3  
Assets:
            
Marketable 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  
  
 
 
     
 
 
     
 
 
     
 
 
  
Contingent Consideration:
            
Beginning Balance as of November 30, 2018
    $ 4,282,975           
Subtractions – Cord:Use earnout payment
      (45,000 )          
Fair value adjustment as of November 30, 2019
      (742,918 )          
  
 
 
           
Ending balance as of November 30, 2019
    $ 3,495,057           
  
 
 
           
    
Fair Value at
      Fair Value Measurements
at November 30, 2018 Using		  
Description
    November 30,
2018		      Level 1      Level 2      Level 3  
Assets:
            
Trading securities
    $ 68,816      $ 68,816        —          —    
Available-for-sale
securities
      806,873        806,873        —          —    
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 875,689      $ 875,689        —          —    
  
 
 
     
 
 
     
 
 
     
 
 
  
Liabilities:
            
Contingent consideration
    $ 4,282,975      $ —          —        $ 4,282,975  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 4,282,975      $ —          —        $ 4,282,975  
  
 
 
     
 
 
     
 
 
     
 
 
  
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:
     November 30, 2019      November 30, 2018  
Numerator:
      
Net income (loss)
    $ 2,290,774      ($ 854,824 ) 
Denominator:
      
Weighted-average shares outstanding-basic
      7,794,828        7,463,051  
Dilutive common shares issuable upon exercise of stock options
      617,586        —    
  
 
 
     
 
 
  
Weighted-average shares-diluted
      8,412,414        7,463,051  
  
 
 
     
 
 
  
Income(Loss) per share:
      
Basic
    $ 0.29      ($ 0.11 ) 
  
 
 
     
 
 
  
Diluted
    $ 0.27      ($ 0.11 )