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. 28, 2021

Schedule of Assets and Liabilities From Contracts With Customers

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

	February 28, 2021		November 30, 2020
Contract assets (sales commissions)	$	478,370	$	466,141
Accounts receivables	$	5,638,992	$	6,322,960
Short-term contract liabilities (deferred revenue)	$	8,880,930	$	9,183,450
Long-term contract liabilities (deferred revenue)	$	27,950,810	$	27,200,910

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 months ended February 28, 2021 and February 29, 2020.

The following table presents changes in the Company’s contract assets and liabilities during the three months ended February 28, 2021:

	Balance at December 1, 2020		Additions		Deductions			Balance at February 28, 2021
Contract assets (sales commissions)	$	466,141	$	18,262	$	(6,033	)	$	478,370
Accounts receivables	$	6,322,960	$	8,402,508	$	(9,086,476	)	$	5,638,992
Contract liabilities (deferred revenue)	$	36,384,360	$	3,711,251	$	(3,263,871	)	$	36,831,740

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 28, 2021 and November 30, 2020, respectively, segregated among the appropriate levels within the fair value hierarchy:

	Fair Value at		Fair Value Measurements
	February 28,		at February 28, 2021 Using
Description	2021		Level 1		Level 2		Level 3
Assets:
Marketable Securities	$	85,900	$	85,900		—		—
	$	85,900	$	85,900		—		—
Liabilities:
Contingent consideration	$	1,662,246	$	—		—	$	1,662,246
Total	$	1,662,246	$	—		—	$	1,662,246
Contingent Consideration:
Beginning Balance as of November 30, 2020	$	1,509,852
Additions – Cord:Use earnout		—
Fair value adjustment as of February 28, 2021		152,394
Ending balance as of February 28, 2021	$	1,662,246

	Fair Value at		Fair Value Measurements
	November 30,		at November 30, 2020 Using
Description	2020		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	88,476	$	88,476		—		—
	$	88,476	$	88,476		—		—
Liabilities:
Contingent consideration	$	1,509,852	$	—		—	$	1,509,852
Total	$	1,509,852	$	—		—	$	1,509,852