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, 2020

Schedule of Assets and Liabilities From Contracts With Customers

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


	May 31, 2020		At Adoption
Deposits and other assets	$	433,875	$	329,231
Accounts receivables	$	5,974,457	$	5,867,335
Short-term contract liabilities (deferred revenue)	$	8,839,718	$	8,365,284
Long-term contract liabilities (deferred revenue)	$	25,312,382	$	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, 2020 and May 31, 2019.

The following table presents changes in the Company’s contract assets and liabilities during the six months ended May 31, 2020:


	Balance at December 1, 2019		Additions		Deductions			Balance at May 31, 2020
Contract assets ( def erred sales commissions)	$	398,535	$	45,801	$	(10,461	)	$	433,875
Accounts receivables	$	6,097,331	$	17,585,653	$	(17,708,527	)	$	5,974,457
Contract liabilities (deferred revenue)	$	32,508,511	$	8,703,442	$	(7,059,853	)	$	34,152,100

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


				Fair Value Measurements
	Fair Value at			at May 31, 2020 Using
Description	May 31, 2020			Level 1		Level 2		Level 3
Assets:
Marketable securities	$	905,429		$	905,429		—		—

Total	$	905,429		$	905,429		—		—

Liabilities:
Contingent consideration	$	3,471,068		$	—		—	$	3,471,068

Total	$	3,471,068		$	—		—	$	3,471,068

Contingent Consideration:
Beginning Balance as of November 30, 2019	$	3,495,057
Subtractions – Cord:Use earnout		—
Fair value adjustment as of May 31, 2020		(23,989	)

Ending balance as of May 31, 2020	$	3,471,068


			Fair Value Measurements
	Fair Value at		at November 30, 2019 Using
Description	November 30, 2019		Level 1		Level 2		Level 3
Assets:
Trading 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