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, 2019

The following table provides information about disaggregated revenue by products and services:

	Three months ended
	May 31, 2019		May 31, 2018
Processing and storage fees	$	7,679,869	$	6,295,455
Public banking revenue		234,115		—
Licensee and royalty income		201,828		203,159
Product revenue		12,040		26,849
	$	8,127,852	$	6,525,463

	Six months ended
	May 31, 2019		May 31, 2018
Processing and storage fees	$	15,014,896	$	12,495,522
Public banking revenue		368,480		—
Licensee and royalty income		201,828		203,159
Product revenue		37,760		54,900
	$	15,622,964	$	12,753,581

Schedule of Assets and Liabilities From Contracts With Customers

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

	May 31, 2019		At Adoption
Contract assets (sales commissions)	$	365,086	$	329,231
Accounts receivables	$	5,758,673	$	5,867,335
Short-term contract liabilities (deferred revenue)	$	8,516,593	$	8,365,284
Long-term contract liabilities (deferred revenue)	$	21,984,017	$	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 six months ended May 31, 2019.

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


	Balance at December 1, 2018		Additions		Deductions			Balance at May 31, 2019
Contract assets (sales commissions)	$	329,231	$	44,488	$	(8,633	)	$	365,086
Accounts receivables	$	5,867,335	$	18,471,851	$	(18,580,513	)	$	5,758,673
Contract liabilities (deferred revenue)	$	28,682,515	$	9,249,051	$	(7,430,956	)	$	30,500,610

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, 2019 and November 30, 2018, respectively, segregated among the appropriate levels within the fair value hierarchy:


				Fair Value Measurements
	Fair Value at			at May 31, 2019 Using
Description	May 31, 2019			Level 1		Level 2		Level 3
Assets:
Marketable securities	$	839,809		$	839,809		—		—
Total	$	839,809		$	839,809		—		—
Liabilities:
Contingent consideration	$	3,612,048
Total	$	3,612,048
Contingent Consideration:
Beginning Balance as of November 30, 2018	$	4,282,975
Subtractions – Cord:Use earnout		—
Fair value adjustment as of May 31, 2019		(670,927	)
Ending balance as of May 31, 2019	$	3,612,048

			Fair Value Measurements
	Fair Value at		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		806,873		806,873		—		—
	$	875,689	$	875,689		—		—
Liabilities:
Contingent consideration	$	4,282,975	$	—		—	$	4,282,975
Total	$	4,282,975	$	—		—	$	4,282,975