Quarterly report pursuant to Section 13 or 15(d)

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

v3.19.3
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)
9 Months Ended
Aug. 31, 2019
Accounting Policies [Abstract]  
Disaggregation of Revenue
The following table provides information about disaggregated revenue by products and services:
 
    Three months ended  
    August 31, 2019     August 31, 2018  
Processing and storage fees
  $ 7,606,624     $ 7,237,053  
Public banking revenue
    160,561       65,575  
Licensee and royalty income
    423,173       539,286  
Product revenue
    33,035       29,308  
   
 
 
   
 
 
 
    $ 8,223,393     $ 7,871,222  
   
 
 
   
 
 
 
 
    Nine months ended  
    August 31, 2019     August 31, 2018  
Processing and storage fees
  $ 22,621,520     $ 19,732,575  
Public banking revenue
    529,041       65,575  
Licensee and royalty income
    625,001       742,445  
Product revenue
    70,795       84,208  
   
 
 
   
 
 
 
    $ 23,846,357     $ 20,624,803  
   
 
 
   
 
 
 
Schedule of Assets and Liabilities From Contracts With Customers
The following table provides information about assets and liabilities from contracts with customers:
 
    August 31, 2019     At Adoption  
Contract assets (sales commissions)
  $ 383,399     $ 329,231  
Accounts receivables
  $ 5,888,156     $ 5,867,335  
Short-term contract liabilities (deferred revenue)
  $ 8,781,229     $ 8,365,284  
Long-term contract liabilities (deferred revenue)
  $ 22,893,086     $ 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, 2019.
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, 2019 and November 30, 2018, respectively, segregated among the appropriate levels within the fair value hierarchy:
 
    Fair Value at     Fair Value Measurements
at August 31, 2019 Using
   
Description
  August 31, 2019     Level 1     Level 2     Level 3    
Assets:
                                 
Marketable securities
  $ 874,691     $ 874,691       —         —      
   
 
 
   
 
 
   
 
 
   
 
 
   
Total
  $ 874,691     $ 874,691       —         —      
   
 
 
   
 
 
   
 
 
   
 
 
   
Liabilities:
                                 
Contingent consideration
  $ 3,601,697    
$
—  
 
  
 
—  
 
  
$
3,601,697
 
 
   
 
 
                           
Total
  $ 3,601,697    
$
—  
 
  
 
—  
 
  
$
3,601,697
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent Consideration:
 
 
 
 
 
 
 
 
 
Beginning Balance as of November 30, 2018
  $ 4,282,975            
Subtractions – Cord:Use earnout
    (45,000          
Fair value adjustment as of August 31, 2019
    (636,278          
   
 
 
           
Ending balance as of August 31, 2019
  $ 3,601,697            
   
 
 
                           
     
    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