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)

3 Months Ended

Feb. 29, 2020

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


	Three months ended
	February 29, 2020		February 28, 2019
Processing and storage fees	$	7,406,288	$	7,335,027
Public banking revenue		154,079		134,365
Product revenue		60,407		25,720

	$	7,620,774	$	7,495,112

Schedule of Assets and Liabilities From Contracts With Customers

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


	February 29, 2020		November 30, 2019
Contract assets (sales commissions)	$	416,745	$	398,535
Accounts receivables	$	5,766,684	$	6,097,331
Short-term contract liabilities (deferred revenue)	$	8,610,304	$	8,875,138
Long-term contract liabilities (deferred revenue)	$	24,454,967	$	23,633,373

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

t have asset impairment charges related to contract assets in the three months ended February 29, 2020 and February 28, 2019.

The following table presents changes in the Company’s contract assets and liabilities during the three months ended February 29, 2020:


	Balance at December 1, 2019		Additions		Deductions			Balance at February 29, 2020
Contract assets (sales commissions)	$	398,535	$	23,320	($	5,110	)	$	416,745
Accounts receivables	$	6,097,331	$	8,438,904	($	8,769,551	)	$	5,766,684
Contract liabilities (deferred revenue)	$	32,508,511	$	4,142,651	($	3,585,891	)	$	33,065,271

The following table presents changes in the Company’s contract assets and liabilities during the three months ended February 28, 2019:


	Balance at December 1, 2018		Additions		Deductions			Balance at February 28, 2019
Contract assets (sales commissions)	$	329,231	$	20,954	($	4,428	)	$	345,757
Accounts receivables	$	5,867,335	$	9,017,603	($	9,190,776	)	$	5,694,162
Contract liabilities (deferred revenue)	$	28,682,515	$	4,467,979	($	3,759,297	)	$	29,391,197

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 February 29, 2020 and November 30, 2019, respectively, segregated among the appropriate levels within the fair value hierarchy:


	Fair Value at February 29, 2020		Fair Value Measurements at February 29, 2020 Using
Description	Fair Value at February 29, 2020		Level 1		Level 2		Level 3
Assets:
Marketable Securities	$	959,001	$	959,001		—		—
	$	959,001	$	959,001		—		—

Liabilities:
Contingent consideration	$	3,443,645	$	—		—	$	3,443,645

Total	$	3,443,645	$	—		—	$	3,443,645


Contingent Consideration:

Beginning Balance as of November 30, 2019	$	3,495,057
Additions – Cord:Use earnout		—
Fair value adjustment as of February 29, 2020		(51,412	)

Ending balance as of February 29, 2020	$	3,443,645


	Fair Value at November 30, 2019		Fair Value Measurements at November 30, 2019 Using
Description	Fair Value at November 30, 2019		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	904,053	$	904,053		—		—

	$	904,053	$	904,053		—		—

Liabilities:
Contingent consideration	$	3,495,057	$	—		—	$	3,495,057

Total	$	3,495,057	$	—		—	$	3,495,057