Quarterly report pursuant to Section 13 or 15(d)

License Agreements

v3.19.3
License Agreements
9 Months Ended
Aug. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
License Agreements
Note 9 – License Agreements
The Company enters into two types of licensing agreements and in both types, the Company earns revenue on the initial license fees. Under the technology agreements, the Company earns processing and storage royalties from the affiliates that process in their own facility. Under the marketing agreements, the Company earns processing and storage revenues from affiliates that store specimens in the Company’s facility in Oldsmar, Florida.
Technology Agreements
The Company has entered into a definitive License and Royalty Agreement with LifeCell International Private Limited, formerly Asia Cryo-Cell Private Limited, (“LifeCell”) to establish and market its umbilical cord blood and menstrual stem cell programs in India.
Per the License and Royalty Agreement with Lifecell, there is a $
1,000,000
cap on the amount of royalty due to the Company per year and a $
10,000,000
cap on the amount of royalties due to the Company for the term of the License and Royalty Agreement. 
Since inception of the License and Royalty Agreement, the Company has recorded approximately $
9,000,000
in royalty income due under the terms of the License and Royalty Agreement, of which, Lifecell has paid the Company approximately $
8,250,000
as of August 31, 2019. The balance of approximately $
750,000
is reflected as Accounts Receivable on the accompanying consolidated balance sheets.
Marketing Agreements
The Company has definitive license agreements to market the Company’s umbilical cord blood stem cell programs in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Pakistan.    
The following table details the initial license fees for the technology agreements and processing and storage royalties earned under the technology agreements for the three and nine months ended August 31, 2019 and August 31, 2018. The initial license fees and processing and storage royalties are reflected in licensee and royalty income in the accompanying consolidated statements of comprehensive income (loss).
Processing and Storage Royalties
    Three Months
Ended
August 31, 2019
    Nine Months
Ended
August 31, 2019
 
License and royalty income
  $ 423,173     $ 625,001  
   
 
 
   
 
 
 
Total
  $ 423,173     $ 625,001  
   
 
 
   
 
 
 
     
    Three Months
Ended
August 31, 2018
    Nine Months
Ended
August 31, 2018
 
License and royalty income
  $ 539,286     $ 742,445  
   
 
 
   
 
 
 
Total
  $ 539,286     $ 742,445