Annual report pursuant to Section 13 and 15(d)

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

v3.22.0.1
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)
12 Months Ended
Nov. 30, 2021
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, 2021

 

 

November 30, 2020

 

Contract assets (sales commissions)

 

$

535,522

 

 

$

466,141

 

Accounts receivables

 

$

5,253,173

 

 

$

6,322,960

 

Short-term contract liabilities (deferred revenue)

 

$

9,358,696

 

 

$

9,183,450

 

Long-term contract liabilities (deferred revenue)

 

$

31,274,214

 

 

$

27,200,910

 

 

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, 2021 and November 30, 2020.

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

 

The following table presents changes in the Company’s contract assets and liabilities during the twelve months ended November 30, 2020:

 

 

 

Balance at
December 1,
2019

 

 

Additions

 

 

Deductions

 

 

Balance at
November 30,
2020

 

Contract assets (sales commissions)

 

$

398,535

 

 

$

89,471

 

 

$

(21,865

)

 

$

466,141

 

Accounts receivables

 

$

6,097,331

 

 

$

38,379,247

 

 

$

(38,153,618

)

 

$

6,322,960

 

Contract liabilities (deferred revenue)

 

$

32,508,511

 

 

$

21,237,546

 

 

$

(17,361,697

)

 

$

36,384,360

 

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

 

Building

 

39 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, 2021 and November 30, 2020, respectively, segregated among the appropriate levels within the fair value hierarchy:

 

 

 

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

 

 

Contingent Consideration:

 

 

 

Beginning Balance as of November 30, 2020

 

$

1,509,852

 

Subtractions – Cord:Use earnout payment

 

 

 

Fair value adjustment as of November 30, 2021

 

 

(782,481

)

Ending balance as of November 30, 2021

 

$

727,371

 

 

 

 

 

Fair Value at

 

 

Fair Value Measurements at November 30, 2020
Using

 

Description

 

November 30,
2020

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

$

88,476

 

 

$

88,476

 

 

$

-

 

 

$

-

 

Total

 

$

88,476

 

 

$

88,476

 

 

$

-

 

 

$

-

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

1,509,852

 

 

$

-

 

 

$

-

 

 

$

1,509,852

 

Total

 

$

1,509,852

 

 

$

-

 

 

$

-

 

 

$

1,509,852

 

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, 2021

 

 

November 30, 2020

 

Numerator:

 

 

 

 

 

 

Net income

 

$

2,083,521

 

 

$

3,624,596

 

Denominator:

 

 

 

 

 

 

Weighted-average shares outstanding-basic

 

 

8,137,342

 

 

 

7,544,494

 

Dilutive common shares issuable upon exercise of
   stock options

 

 

224,378

 

 

 

595,686

 

Weighted-average shares-diluted

 

 

8,361,720

 

 

 

8,140,180

 

Income per share:

 

 

 

 

 

 

Basic

 

$

0.26

 

 

$

0.48

 

Diluted

 

$

0.25

 

 

$

0.45